Log In

| Recover password

Vide [2017] 398 ITR 531 (SC) the Apex Court held that the object of section 2(47)(vi) is to bring within the tax net a de facto transfer of any immovable property.
Further therefore to subject a Joint Development Agreement(JDA) to liability under capital gains taxation the following four events must have occurredto regard it as a de facto transfer under the law:
  1. There should be an agreement between the owner of land and the developer for development;
  2. Such agreement should be registered and stamp duty paid thus rendering transfer in law ;
  3. Possession is also delivered; and
  4. All approvals for development are in place.
Till the time all these four elements are not satisfiedthere shall be no liability to capital gains tax.

Leave a Reply

Your email address will not be published.

error: Do not copy the content of this website.