Union Finance Minister has clarified that profits from housing projects, qualified under Section 80IB(10) of the Income Tax Act and approved by a local authority between April 01, 2007 and March 31, 2008, will be tax free, if they are completed before March 31, 2012. The project need to meet following criteria or conditions to get the benefit of tax holiday.
- The project should be having at lease one acre land
- The project should be within 25 km from local municipal limits
- The built-up area of each residential unit should be less than 1,000 sq.ft. in metros and 1,500 sq.ft. in other places.
If you are planning to buy a property or apartment, it is likely that your property price will be affordable or much lesser price. If you are planning to buy a property from such projects, builders will pass benefit of tax holiday to your property price.