Page 88 - DHC Budget Book 2021-22 Final
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Sec. 80-IBA provides for 100% deduction on the amount of profits derived from the business
of developing and building affordable housing projects. One of the conditions for deduction
u/s 80-IBA is that the project is approved by the competent authority during the period from 01-06-2016 to 31-03-2021. In order to further incentivise building of affordable housing projects, period of approval of such projects
by the competent authority is proposed to be extended to 31-03-2022.
Further, in order to help migrant labourers and to promote affordable rental housing projects, it is proposed to expand scope of Sec. 80-IBA to allow 100% deduction on the amount of profits derived from the business of developing and building rental housing projects. Such projects shall be notified by the CG on or before 31-03- 2022.
INDIA BUDGET 2021-22
7.15
Time limit for approval of housing project extended for availing deduction u/s 80-IBA & scope thereof expanded to cover affordable rental housing projects [w.e.f. AY 2022-23]
7.16 Exclusion of Limited Liability Partnerships from the purview of Presumptive Taxation Scheme u/s 44ADA [Sec. 44ADA] [w.r.e.f. AY 2021-22]
The existing provisions of Sec. 44ADA provides
a special mechanism for computing income under the head ‘Profits and Gains of Business
or Profession’ on presumptive basis for a resident assessee engaged in any profession
as provided in Sec. 44AA such as legal, medical, engineering, architectural, accountancy, etc. and whose total gross receipts in such profession does not exceed an amount of H 50 Lacs. The assessee who opt for taxation u/s 44ADA are not
required to maintain proper books of accounts as required u/s 44AA.
Since a Limited Liability Partnership (‘LLP’) is required to maintain proper books of accounts under the LLP Act, 2008, it is proposed to amend the provisions of Sec. 44ADA to exclude an LLP registered under the LLP Act from its purview. Accordingly, the provisions of Sec. 44ADA
shall now only apply to an Individual, HUF or a partnership firm other than an LLP.
7.17 Payment of dividend by SPV to business trust excluded from TDS [Sec. 194] [w.r.e.f. AY 2021-22]
Sec. 194 of the Act provides for deduction of tax at source (TDS) on payment of dividends to a resident. Presently, as per second proviso to Sec.194, no TDS is required to be made on income credited or paid to certain insurance companies or insurers.
Incidentally, dividend received by a business trust from an SPV is exempt u/s 10(23FC). Accordingly, it is proposed to increase the scope
of exclusions in the second proviso of Sec. 194 to provide that TDS shall not be applicable on income credited or paid by a special purpose vehicle [referred to in Explanation
to Sec.10(23FC)] to a business trust [defined in Sec.2(13A)]. Further, CG now has been empowered to notify other persons who shall not be subjected to TDS on dividend received.
86 Building a Resilient and Confident India
