Section 142 — Affordable Housing 80-IBA | ITA 2025

Section 142 — AFFORDABLE HOUSING PROJECT 100% DEDUCTION (1961 s. 80-IBA SUCCESSOR)

Section 142 is the substantive equivalent of 1961 s. 80-IBA. Real-estate developer constructing affordable-housing project (specified flat-area / project-size / completion-period) gets 100% deduction of profits derived from the project. Project must be approved by competent authority between 1-Jun-2016 and 31-Mar-2022 (sunset). Eligible flat sizes: ≤ 60 sqm in metro / ≤ 90 sqm in non-metro carpet area. Project must be completed within 5 years of approval. Available IN BOTH OLD AND NEW REGIMES.

Statutory text — Income-tax Act, 2025

Marginal note — Deductions in respect of profits and gains from housing projects

In respect of any tax year, where—

(a) the gross total income of an assessee, includes any profits and gains derived from the business of developing and building housing projects or rental housing projects referred to in section 80-IBA of the Income-tax Act, 1961 (43 of 1961); and

(b) such assessee is eligible to claim a deduction from the profits and gains derived from such business for such tax year under the provisions of the said section, as if the said Act had not been repealed, there shall be allowed, in computing the total income of the assessee, a deduction from the profits and gains derived from such business, subject to the conditions that—

(i) the amount of deduction is calculated as per the provisions of section 80-IBA of the Income-tax Act, 1961 (43 of 1961); and

(ii) the deduction under this Act shall be allowed only for such tax years, as would have been allowed under section 80-IBA of the Income-tax Act, 1961 (43 of 1961), as if the said Act had not been repealed.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 — s. 142	INCOME-TAX ACT, 1961 — s. 80-IBA
Affordable housing 100% deduction	Same
Flat-size + project-size limits	1961 s. 80-IBA(2)
Approval window 1-Jun-2016 to 31-Mar-2022	FA 2016 to FA 2021 extensions

PLANNING NOTES

(i) Sunset 31-Mar-2022 means no new approvals qualify; legacy projects continuing. (ii) Project completion within 5 years critical — failure forfeits deduction. (iii) Maintain RERA compliance + competent-authority approval letter + completion-certificate. (iv) For multi-phase projects, deduction phase-wise; document profits-attribution carefully.

CROSS-REFERENCES

RERA, 2016.
Section 195 / 200 — Tax regimes.

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