This clause (h) prescribes a condition towards utilisation of Floor Area Ratio (FAR) to be 90% in case of four metros and 80% in other places.

It is a factual position in the industry that there are two types of constructions. One is a high-rise/multi-storied buildings equipped with lifts and other structural specifications. Another is simple structure with Ground+3 or Ground+4 structures. In case of latter types of projects which are not multi-storied but low- rise buildings, it is practically not possible to achieve FAR of 80%. And most of the affordable housing comes under low rise buildings because of cheaper and faster construction. All these low rise projects will never be able to fulfil the condition of 80% FAR utilisation.


Thus in such projects the condition of 80% need to be revised to 60% of FAR.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

More Under Income Tax

Posted Under

Category : Income Tax (28550)
Type : News (14084)
Tags : Budget (1960) Budget 2018 (402) ICAI (2775)

Leave a Reply

Your email address will not be published. Required fields are marked *