AHMEDABAD: In a record of sorts, two biggest cities of the state, Ahmedabad and Surat, saw housing projects worth over a staggering Rs 15,000 crore cleared in last couple of months, with some 1,000 building plans approved under section 80 IB of the Income Tax Act.With the Centre discontinuing the IT exemption under the section in this year’s budget, developers flocked to get their plans approved before March 31.
Projects under 80 IB enjoyed 100% tax exemption for a housing project on the size of a plot which has a minimum area of one acre; and the residential unit which has a maximum built-up area of 1,000 sq feet where such a unit is situated within the cities of Delhi or Mumbai or within 25 km from the municipal limits of these cities and 1,500 sq feet at any other place.
According to sources in Surat civic body and Surat Urban Development Authority, some 521 plans estimated to be worth Rs 10,000 crore were cleared in Surat alone. In Ahmedabad, over 400 plans have been approved by Ahmedabad civic body and Ahmedabad Urban Development Authority worth close to Rs 5,000 crore. “We were hoping that the IT exemption would be extended.
But now all future projects will be taxed and most of the burden will have to be borne by property buyers,” president of Surat Builders’ Association Jayant Ganatra.
Developers said approvals were expedited at the behest of the state as projects exempted under IT target middle and upper middle income group people, and the latter probably did not want to annoy voters or developers in an election year. “The state urban development department issued a communique to all civic bodies to put all projects under 80 IB on priority and clear them before March 31,” said a civic official.
Ganatra said should also have to ease the norms to convert land into NA (non-agricultural), so that they can get a letter of permission from civic bodies to avail of the
IT benefit.
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