Special Provisions For Computation Of Capital Gains In Case Of Joint Development Agreement

The hon`ble Supreme Court`s ruling in the Balbir Sigh Maini case should be discussed, especially in cases where, due to a lack of legal sanctions, no construction took place. Issues relating to the retrospectivity of Article 45(5A) also merit discussion. There is a need for further discussion on whether the amended provision can only provide benefits to the person after the date indicated and withdraw that benefit from similar residents. We will thus deny arbitrariness. Dear madam, I gave a plot of land that I bought in 2001 for development, to a client UNDER JDA with the client in 2016, and I developed the land and the certificate of completion arrived in January 2020 for the apartments. He sold only one apartment among many others. So how to tap on the capital gains tax. It is for an apartment or for all the apartments that I received from the client. By applying the definition of transfer, the transfer took place under these joint development agreements in the year in which real estate, land or buildings or both were handed over to the developer.

Generally speaking, there may be several phases or events resulting from a joint development agreement between the land owner and the developer. To determine the actual date of transfer of the country by the landowner, all these phases/events must be analyzed collectively and, after assessing the overall impact of it, we can determine the actual date of transmission. These phases/events can be considered as the date of conclusion of the JDA, the date of execution of the power of attorney that authorizes the developer to obtain different permissions/permissions, etc. request the handover of ownership of the land to the developer for various purposes, the receipt of a partial/complete sale underperformance by the developer, the date of execution of the power of attorney in favor of the developer who authorizes him to sell the developed units to customers at his discretion; and the delivery of developed units to customers, etc. There may be other phases/events to close the transaction. However, an isolated event can trigger the transmission process, but not necessarily complete it. The analysis of the interaction and impact of all these phases / events makes it possible to determine whether the transfer took place for the most part and to determine together. For example, ownership can be given for different purposes, namely. Ownership given to a contractor or tenant, but such an event cannot be considered a „transfer“ of land. Ownership of land may be transferred as a licensee only for the purpose of developing immovable property on land.

Again, it must not result in „transmission“. Therefore, if ownership is transferred to the developer, along with other legal rights, which give rise to a right of the developer to the full use and use of the property, as well as to the continuation of its sale in operated units, this may lead to a „transfer“, provided that other conditions also suggest. The handing over of ownership must therefore necessarily be linked to the intention to transfer to the developer the rights of ownership and enjoyment of the property. The surrender of the property by the landowner for the limited purpose of land development, while retaining ownership and controlling various legal rights in the land, would not fall within section v of Article 2 (47). Assessee ran Regd. JDA and has ceded ownership of land to the developer for development Only in the event that the land or buildings are owned by the owner or treated as capital assets. – Once the project is completed, Mr. X is entitled to 60% of the built area of the project in the form of housing / shops, etc.

according to the schedule of the agreement the entire conflict zone between Assessee and the Income Administration is this calculation of the capital gain. C. Cases of conversion of land held by the landowner to stock-in-trade before entry into JDA: – Owners wish to build a building on the mentioned land, but due to the lack of experience in the construction and development of land, the same for the development entrusted to the developer in summary, the new section 45 (5A), fix, among other things, the tax year of the capital gain, regardless of the year of transfer of capital (in the form of land) and 2(47) of the law; and also eliminated subjectivity in the valuation of non-monetary counterparties received/accumulated as a result of the transfer under the development agreement.. . .