| Question And Answer | |
|---|---|
| Subject: | Condition of Stamp duty Value and Claim of Deduction U/Sec. 80IBA |
| Category: | Income-Tax |
| Querist: | CA Kranti C. Bhoir |
| Answered by: | Advocate Rahul Hakani |
| Tags: | 80IBA, Stamp duty value |
| Date: | March 29, 2023 |
As per provisions of Sec. 80IBA, the maximum value of the house to be constructed for being eligible for deduction under this section for projects approved after 1.09.2019 shall be restricted to Rs. 45 lakhs as per Stamp duty Rates.
Satisfaction of condition for being eligible for claiming deduction U/s. 80IBA with respect to Stamp Duty Value up to Rs. 45 Lakhs is to be seen at what point of time i.e. only once at the time of project approval by competent Authority or whenever the unit is sold as the stamp duty value keeps on changing almost every year in certain areas.
The stamp value has to be seen only at the time the project is approved by the Competent Authority. One may get support from Section 50C of the Act wherein the legislature has used the word assessed or assessable.
In my view, the stamp duty value at the time the approval is granted by the competent authority would be the relevant date for consideration of deduction u/a 80-IBA. My reasons are:
Take a case where the housing project has been approved by the competent authority and development has begun. If the SDV at the time of approval is at or below 45 lakh, only then would you further develop property otherwise you cant claim the deduction. Now say in year 3 of development the SDV is 50 lakh. That would not disentitle you to claim the deduction after development is complete, having already begun developing the housing project. Hence, say on completion the SDV is 65lakh. It does not matter since the intention of the legislature was to allow deduction at the time of approval and not after development has begun to retrospectively disentitle deduction.
Also see: CIT vs Sarkar Builders(SC judgment)
Value at the time of approval by competent authority is the relevant date for compliance with S.80-IBA(2)(d)