Section 80-IBA - Tax Exemption

We are eligible for deduction u/s 80IBA. Here we just want to confirm can we sell residential units to persons other individuals i.e. firms/companies etc. as there is one condition of one unit to one family is applicable.

If so then can we sell any amount of units to such firms/companies.

 

Replies (5)
Quick Summary
This discussion clarifies the eligibility for Section 80-IBA tax exemption concerning the sale of residential units. While the section mentions a 'one unit to one family' condition, it specifically applies to individuals, their spouses, and minor children. The consensus is that units developed under Section 80-IBA cannot be sold to firms or companies, as the exemption is intended for affordable housing for individual families, not corporate entities.

NO. You can sell these units to individuals only.

Any specific section stating this !! Will be of great Help ? Please refer ?

Read sub-clauses in the section........

"(g) where a residential unit in the housing project is allotted to an individual, no other residential unit in the housing project shall be allotted to the individual or the spouse or the minor children of such individual;"

Exactly Sir !! But here its not prohibiting firms and companies. Its stating about individuals only. and the maximum number of units for individual only.

Go by the intention of the giving exemption to the firm. It is based on Affordable housing for maximum families.

HUF/Firms/Companies etc do not need housing, it is individual families that require these facilities.

Who are eligible for these houses....

1. The family identifies as one of the following -

a) Economically Weaker Section (EWS): households with annual income up to ₹ 3,00,000.

b) Low Income Group (LIG): households with annual income between ₹ 3,00,001 and ₹ 6,00,000.

c) Middle Income Group-1 (MIG-1): households with annual income between ₹ 6,00,001 and ₹ 12,00,000.

d) Middle Income Group-2 (MIG-2): households with annual income between ₹ 12,00,001 and ₹ 18,00,000.

2. The applicant or his/her family members must not be owning a pucca house in any part of the country.

3. The family must comprise of husband/wife and unmarried children.

4. The town/city in which the family resides must be covered under the scheme.

5. The family MUST NOT have previously availed the benefits of any housing-related schemes set up by the Government of India.

 

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