State ordinance converts APHB
into a non-profit organisation for
HYDERABAD: The State government on Monday promulgated an ordinance to get income tax exemption on profits earned by the Andhra Pradesh Housing Board (APHB) and save a tax of over Rs. 1,000 crore payable towards on sale of its lands and houses and flats.
Changes in powers
The ordinance provides for effecting changes in the powers and functions of the Vice-President and Managing Director of the board and re-designate some of its higher officials.
As per the income tax laws, the APHB should pay income tax to the tune of 30 per cent on the sales of its lands and houses/flats. But now, the government, through the ordinance, converted the Housing Board into a non-profit organisation with the stipulation that whatever profited earned by the board would be remitted into its treasury going towards the Consolidated Fund of the State. The profit earned by the Board now would automatically get income tax exemption, a Housing Department official said.