– Before the amendment of paragraph 54F by Finance Act 2014 w.e.f. A.Y. 2015-16, there are many judgments that say that the u/s 54F deduction is kept on more than one dwelling under a development contract. However, the amendment limited the benefit to a single dwelling house. (see TAV Gupta vs ITO  93 taxmann.com 249 (Bangalore), Ms Adeebunnisa Begum Vs ITO, ITA 816/2017 (Hyderabad), etc.] Does not apply if the entire sales consideration is only monetary. Assessee joined JDA with developers and handed it over the country. In exchange, the auditor was entitled to 60% of the built-up area of the proposed project. For more details, here is: Assessee executed Regd. JDA and has ceded ownership of land to development developers If the transfer of land into the hands of the owner at the time of entry into JDA/DA is made with the developer or at the time of the surrender of the land to the developer or at the time of the sale of the built area to third-party customers or at the time of the execution of the transport authorization. In accordance with the provisions of paragraph 50D of the Information Technology Act, the fair value of the asset in question is considered on the date of the transfer to be the total value of the consideration received or generated by the transfer,” but the JDA project takes biszus.
(2 to 3 years) and are subject to a risk of fluctuation. Therefore, the fair value of the project is not justified at the time of the implementation of the JDA. – If the landowner evaluates the sale/transfer of his share as part of JDA before the end of the project by the developers. The provisions of section 2, paragraph 47, apply only in case of assets. In accordance with Section 2.14, the asset does not include stock in the trading. As soon as the asset is negotiable in part, the provisions of Section 2 (47) are therefore irrelevant and do not apply. Under the current provisions of Section 45, the capital gain in the transfer year is taxable only in certain cases. The definition of “transfer” includes, among other things, any agreement or transaction in which rights are transferred in the event of partial performance of the contract, even if the title has not been transferred. In such a scenario, the execution of the joint development contract between the property owner and the developer triggers the capital gains tax debt in the hands of the owner, the year in which the property is given to the developer for the development of a project.
– At the end of the project, Mr. X is entitled to 60% of the project`s built-up area in the form of housing/trade, etc. according to the timetable of the agreement. The definition of the transfer in Section 2(47) cannot therefore be used for the sale or transfer of commercial stocks out of the measure or in any other way. In the real estate sector, the model of the Development Agreement [DA] or the Joint Development Agreement [JDA] has developed as a popular agreement in which landowners and developers enter into a common development agreement for the development of real estate. As a general rule, under this type of agreement, instead of landowners who abandon their land in favour of the developer by general proxy (GPA), to develop/build the same thing at the developer`s expense and know-how, a financial consideration or not in the form of a lump sum consideration or a certain percentage of the proceeds of the future sale of the project to be developed, or even a certain percentage of the built-up area in the future project or a mixture of it Sometimes the developer would give the landowner a lump sum in the form of a refundable deposit upon JDA`s entry. When the development/construction period is over, the built land is given to the owner in the form of housing/commerce, etc.