The Statutory Brief

IT Act 1961 → 2025 / Section 80-IBA

Deductions

Section 80-IBA → Section 142

100% deduction for affordable housing projects (grandfathered)

Section 80-IBA of the old Income-tax Act, 1961 · new section 142 under the Income-tax Act, 2025

New reference Section 142

Income-tax Act, 1961Section 80-IBA

  • 100% of profits from affordable housing projects
  • Project approved between 1 June 2016 and 31 March 2022
  • Carpet area 60 sq m (metro) / 90 sq m; stamp duty value up to ₹45 lakh
  • Completion within 5 years of approval

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 142

  • Section 142: deduction continues only for projects eligible under 80-IBA
  • Computed as per 80-IBA of the 1961 Act 'as if it had not been repealed'
  • Only for the remaining tax years allowable under 80-IBA

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Grandfathered by reference: section 142 does not restate the conditions; it applies section 80-IBA as if the 1961 Act were still in force.

Practice notes

  • No new projects can qualify.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Is 80-IBA available under the new Income Tax Act?

Only for already-eligible projects, through section 142, computed as per 80-IBA of the 1961 Act.

What is section 80-IBA called in the new Income-tax Act, 2025?

Section 80-IBA of the Income-tax Act, 1961 corresponds to Section 142 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 80-IBA under the new Income Tax Act?

Grandfathered by reference: section 142 does not restate the conditions; it applies section 80-IBA as if the 1961 Act were still in force.

Is section 80-IBA still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 80-IBA of the 1961 Act. Section 142 of the 2025 Act applies from tax year 2026-27.

Related sections

80A–89A→122–15880DDB, 80EE, 80EEB, 80GGA, 80GGB, 80-IA, 80-IBA, 80LA, 80M, 80QQB, 80RRB, 87 rebate, 89A43CA→53Stamp duty value as sale price for land/building held as stock-in-trade80-IAC→140100% profit deduction for eligible start-ups for 3 out of 10 years