Page 16 - Budget_2020

Union Budget 2020
Deductions
Rationalisation of Provisions of Start-ups

Sec 80-IAC provides 100% deduction of profits for start-ups, subject to specified conditions
Deduction shall now be available to an eligible start-up

 If the total turnover does not exceed Rs. 100 crores (enhanced from Rs 25 crores) in any of the PYs
beginning from the year of its incorporation

 For a period of 3 consecutive AYs out of 10 years (increased from 7 years) from the year of its
incorporation.
AY 2021-22 and subsequent AYs

This is a welcome step to foster the start-up ecosystem

Approval of Affordable Housing Project and Sanctioning of Loans
 Sec 80-IBA provides for deduction of 100% profits and gains of business engaged in affordable housing
 Further, u/s 80EEA, additional deduction is allowed of Rs. 1.5 lakhs for repayment of housing loan if,
inter alia, the loan is sanctioned within FY 19-20

 In order to incentivize building affordable housing, the period of approval of the project by the competent
authority is proposed to be extended to 31st March 2021.
 With a view to continue promoting the purchase of first-time buyers under affordable housing, the period
of sanctioning of loan by the financial institution is proposed to be extended to 31st March 2021

AY 2021-22 and subsequent AYs

A welcome step to give some oxygen to an ailing sector in recent times.

14