section 80 I B

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Akshay Luniya (Querist)
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27 November 2009 till which year the income of housing projects is exempted under section 80 I B

Please brief in details

Thanks!!!

M Prabhakar Menon

M Prabhakar Menon (Expert)
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27 November 2009 U/s 80-1B(10) Construction should be completed within 4 years from the end of the financial year in which the housing project is first approved or before April 1,2008 whichever is later.

Akshay Luniya

Akshay Luniya (Querist)
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27 November 2009 Whether this limit is extended or what?

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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23 July 2025 Yes, the time limits and conditions under **Section 80-IB(10)** of the Income Tax Act regarding housing projects have been **amended several times** over the years. Here's a detailed **and updated summary** to clarify:

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### 🏠 **Section 80-IB(10) – Housing Projects Deduction (Historical Perspective)**

Section 80-IB(10) provided **100% deduction of profits derived from developing and building housing projects**, subject to certain **conditions** related to approval and completion dates.

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### 📅 **Key Timeline & Amendments:**

#### ✅ **For Projects Approved Before 1st April 2005:**

* Completion required **within 4 years** from the end of the financial year in which project was first approved.

#### ✅ **For Projects Approved Between 1st April 2005 and 31st March 2007:**

* Completion required **within 4 years** from end of FY of approval.

#### ✅ **Post-2007 Extension (through Finance Acts):**

* **Finance Act 2010** extended the **completion period to 5 years** (from 4 years) for projects approved **on or after 1st April 2005**.

#### ✅ **Deadline for Project Approval:**

* Initially, only projects approved **up to 31st March 2008** were eligible.
* This was later **extended up to 31st March 2008**, and through various Finance Acts, up to **31st March 2011**.

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### ✅ **Final Cut-off:**

* **Deduction under Section 80-IB(10) is no longer available for new projects approved after 31st March 2008/2011**, depending on specific sub-clauses.
* The benefit has **effectively been phased out**, and for recent years, **Section 80-IBA** (introduced via Finance Act 2016) has replaced it for new affordable housing projects.

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### 🔄 **Current Alternative: Section 80-IBA**

From **AY 2017-18 onwards**, **Section 80-IBA** allows similar deductions for **affordable housing projects**, but with updated norms:

* Carpet area limits
* Project approval deadline
* Completion timelines
* Affordable housing criteria

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### 📌 Summary:

| Condition | Section 80-IB(10) (Old) |
| ----------------------------- | ------------------------------------------------ |
| Last project approval allowed | 31st March 2008 (extended to 2011 in some cases) |
| Deduction quantum | 100% of profits |
| Completion period (final) | 5 years from end of FY of approval |
| Section replaced by | Section 80-IBA (from AY 2017-18) |

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If you want clarification on a **specific assessment year or project approval date**, I can help tailor the answer further.

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