| Question And Answer | |
|---|---|
| Subject: | Stamp duty Value and Claim of Deduction U/Sec. 80IBA |
| Category: | Income-Tax |
| Querist: | Ruchi Bhansali |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | deduction u/s 80IA, section 80IBA deduction, Stamp Duty, stamp value |
| Date: | April 14, 2022 |
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.
Does this means developers can sale the units for any consideration more than 45 lakhs also till the stamp duty valuation is 45 lakhs. ?
Whether tolarance limit of 10% as given in Sec. 43CA and 50C is applicable while considering stamp duty rates of the residential units for claiming deduction U/Sec.80IBA ?
pl guide .
Yes, the stamp duty value of the property cannot exceed Rs. 45 lakhs.
No, the safe harbour limit under Section 43CA and section 50C of the Income-tax Act, 1961 (Act) will not be applicable to section 80IBA of the Act.
The Hon’ble Supreme Court in the case of P.R. Prabhakar v. CIT [2006] 284 ITR 548 (SC) held that exemption provision must be strictly construed but when it is found an exemption is available then it must be given its full play.
Therefore, by strict interpretation, safe harbour limits cannot be read into section 80 IBA of the Act.