Capital gain tax for land owner's share

- As the JDA was registered on 04.04.2019, builder will be liable to pay GST on the inventory held by him on the date of completion certificate. As you have mentioned, builder already made agreement for sale for his share of two flats then no liability for GST is payable by builder.

 Why you have paid Rs.24 lacs as TDR is not understooable?

- Under Income tax, capital gain will be computed on the date of issue of completion certificate. Stamp duty value will be considered as the value of sales consideration. stamp duty will be treated as cost acquisition. At the time of sale, stamp duty value on the date of actual sale will be considered as sales consideration and stamp duty value on the date of completion certificate will be treated as cost of acquisition.

Total area in sq.ft - 2099.97/5*3 -1259.982

sales consideration - Rs.30,23,957 (1259.982*2400)

For detailed discussion, please take phone consultation

- Is that reimbursable by the builder?. I think it should be borne by the builder.

Dear Sir,

Hope you are doing well !!

Taxation under the JDA Joint Development Agreement is different as compared to normal capital gain. Here Sec. 45(5A) comes to the scenario. As per Sec. 45(5A), Capital Gain arising under JDA are taxable in the previous year in which the certificate of completion for the whole or part of the project is issued by the competent authority. And the stamp duty value, on the date of issue of the said certificate, of his share, being land or building or both in the project, as increased by the consideration received in cash, if any, shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset

Then further Capital Gain liability would arise on the sale of the floors in the year of the actual sale, Sale Consideration would be actual sale proceeds received and the cost of acquisition would be the Stamp Duty Value considered at the time of completion certificate.

It is advisable to take a phone consultation for detailed discussion.

Hi

As  per the provisions of Sec. 45 of Income Tax Act, 1961, a person is liable to capital gains in the year in which transfer takes place, irrespective of receipt of sale consideration. However, a new amendment, Sec. 45(5A) is introduced by Finance Act, 2017, with effect from 01/04/2018, providing great relief to individuals / HUFs. According to this amendment, the individuals/ HUF who enters Joint Development Agreement with the builder are liable to capital gains in the year in which the certificate of completion is issued by the competent authority.

We can have detail discussion  on a phone consultation.

It is advisable to take a phone consultation for detailed discussion.P