sec 80 IB(10)

 

A construction company taken building plan approval for 100 houses from local authority i.e. GRAM PANCHAYAT before 31/03/2007 and started construction accordingly.

Now in JUNE 2008, company feels that it will be easy and beneficial if plan is being approved by Directorate of Township  Development and planing Authority. if she takes plan approval of DTDPA she has to sacrifice 10% area of total land for parks,road etc which results that total no of houses will be reduced to 90.

now my queries are

if only gram panchayat approval is considered for 80 IB due to it was taken before 31/03/2007 and construction is for 90 houses instead of 100 houses will it amount to completion of project according to approved plan?can exemption u/s 80 IB be fully availed?

can second approval be treated as continuation of first approval where both the senctioning authority are diffrent?

 

Replies (3)

As per the provision of the Sec. 80IB, plan must be approved before 31.03.2007. If the developer plan approved for 100 houses & he constructs only 90 then he doesnot fulfill the conditions as mentioned in Sec. 80IB. Also, if he wants to construct 90 then approved plan must be approved by local authority before 31.03.2007. if revised plan is not approved before 31.03.2007 then in my opinion benefit of 80 IB not available. 

but in section 80 IB it is mentioned that if approval is taken more than once than date of first approval will be considered for calculating 4 year limit

Dear All,

Whether approval can be obtained for extension of time line of 4 years for completion of project for claiming deduction under Sec. 80IB?

I

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