….. introductory capital gains in their hands for land redistricting agreements under the previous year`s JDA in which the closing deed is issued and not in the year in which the JDA was concluded or the acquisition of the land to the developer in accordance with that year. Recent changes to income tax legislation under a Common Development Agreement (JDA) by the inclusion of a new subsection (5A) in Section 45 of the Income Tax Act w.e…. As has already been said, the new Section 45 (5A) tax regime applies only in the case of asset transfers under the JDA. In the event of an asset transformation in the owner`s trading by their owners prior to the execution of a registered development contract, the benefit of paragraph 45 (5A), i.e. the deferral of the tax debt until the closing date of the project, is not available and the capital gain resulting from the conversion and business benefit resulting from the sale/transfer of shares in the trading is taxable, as provided in Section 45 (2) of the Act. Blind men are the evaluators, the elephant is the department of income tax, courts and courts, in the age of understanding and time not. We`re caught in between!! The advice of the consultants does not matter. There should be a prejudicial removal authority that, in such cases, binds all parties. Special provisions for calculating capital gains in the case of a common development agreement – Section 45 (5A) – Capital Income – Income Tax Dear Woman, I gave a piece of land that I bought in 2001 for development to an UNDER JDA contractor with the prime contractor in 2016, and obtained the well developed and closing certificate in January 2020 for the dwellings.

Sold an apartment only by many. how to hit capital gains tax. It is for an apartment or for all the apartments that I received from the owner. Thank you Section 2 (47) only applies 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. Justice-GAAR: otherwise, in the absence of a legal GAAR as above, the powers of the courts will continue to exist beyond certain provisions of the GAAR (Judicial SGAAR) and even if a particular case is not covered by the specific provisions of GAAR, (may be due to tax benefits below the threshold of case 3 cr. or other grounds) Courts may view the same as an abusive tax evasion agreement by exercising their inherent powers, as in the past Supreme Court decisions such as Sumati Dayal vs.

CIT (1995) 214 ITR 801 (SC), Mcdowell – Co. vs. CTO (1985) 154 ITR 148 (SC), etc. on recent rulings by high courts such as CIT vs Carlton Hotels Pvt. Ltd. (2017) 399 ITR 611 (All). HC), CIT vs.M. P.

Purushottam (2019) 105 CCH 106 (Madras), etc. Income collected by the developer under a JDA in the form of an assessment of the sales of its share in the property developed is considered its commercial income and is taxed in accordance with the applicable provisions. In the above scenario, before 01.04.17, taking into account the section 45 royalties read by Section 2 (47) of the Act, many complex issues such as the transfer of land by landowners (particularly in light of Section 53A of the transfer of the Property Act 1882), the value of the non-monetary consideration received/run or the claim, the manner in which the resulting profits are taxed, etc., have arisen, which have been the subject of lengthy litigation. It is generally accepted that there may be several steps or events in a joint development agreement between the landowner and the real estate developer. To determine the actual date of land transfer by the landowner, all these phases/events must be collectively analsysed and after the devaluation of the overall effect of the land, we can determine the actual date of transmission.