Greetings, I have couple questions, appreciate if you can help me by answering them. 1) Are their any tax implications/benefits of the land owner who is also part/director of the development firm. 2) Benefits of taking land on Partnership firm and developing instead of taking land individually and give for development to their own firm.
Hi, I have a few queries from the example you shared; 1. As per JV, 6 flats are given to landowner and 4 flats retained by developer. Assuming, developer selling those 4 flats, will there be any LTCG liability on landowner for those 4 flats as well? 2. Assuming there is no transfer of land takes place. JVA says landowner gives POA to developer to construct 10 flats and then handover 6 flats to landowner for self use. No other cash consideration. Will there be incidence of LTCG and if yes, how? Can it be shown as the landowner has bought the 6 flats from the developer and hence he has invested the entire consideration in procuring the new flats which is eligible for LTCG exemption U/s 54F? 3. Landowner sells 4 flats out of the 6 flats received as per JV to outsiders and retains 2 flats for self use. In such case how LTCG will be calculated?
I have a plot land measuring 2800 Sq.ft. I proposed to give for JDA. Agreed ratio is 50:50. So I will get 3 flats and no cash. Whether Capital gain is there ?
Yes, since you are selling the land, capital gains will arise only after you receive the flats. Please refer to this article for complete details along with examples: cleartax.in/s/section-45-5a-of-income-tax-act Team Clear
Hello madam, should I make a JDA with builder if I'm getting ONLY CASH as consideration at the time of issue of completion certi. If not JDA, what type of agreement I should ask for.
Yes, you can take only cash as consideration in a JDA. JDA can have both cash and share of land as a consideration or only cash/share of land as consideration. If you are taking cash, take the amount of sale consideration of the project. Team Clear
We bought land for 70 lakh in 2013 and gave it to builder for development in 2014 for 7 flats in return, builder completed flats with completion letter in 2020 and transferred to us in same year 2020, valuation of 1 flat now is 30 lakhs, so can you plz tell me how much tax do we have to pay on 2.1 cr (total valuation of 7 flats now) Please reply 🙏
what if the individual has received some part of the consideration in cash and that too in installments during the construction period. how & when this cash received will be taxed. is the total cash received to be added only at the time of incidence of CG i.e. at the time of completion?
I got security deposit from developer but project yet to be start, security deposit is adjustable in future, I want to know security deposit is taxable?
Mam please can u tell me that , who can kept orginal JDA agreement papers land owner or developer ? Land owner should keep wich important orginal documents and papers after JDA ? Please reply
The developer will have the original JDA agreement papers. The owner will have the original land papers or title, such as the sale deed, encumbrance certificate, tax-paid receipts, etc. Team Clear
Nice video! I have a problem. A registered JDA, and a separate agreement for sale was made of my share of one flat. But the developer sold it without my knowledge but paid me the money. The agreement was not registered. Since he didn't hand over my share and I naturally didn't pay stamp duty, how will this transaction be treated?
yes.. u can claim exmdeption but entire consideration to be invested not capital gain alone and at the time transfer of land the assessee should not own more than one residential house apart from the one which the assessee is planning to buy to claim exemption.
Hello madam, If the JDA happened prior to 1.4.2017. Does the land owner need to pay Capital gain taxes at the time/year of JDA or after the certificate of completion ? Will the new section 45(5A) be applied to the older JDA's as well ?
Hello mam, If I have received some money and 2 flats from developer with the JDA and after completion of project I got my flat but not sold any of them, so is there will be any Capital Gain tax?? Pls reply.
@Subhajit Das, please note that capital gain is chargeable to tax in the year in which the transfer takes place except in certain cases. However, in the case of JDA, capital gains tax is payable in the year in which the possession of the immovable property is handed over to the developer for the development of a project. Stay tuned to our channel for an exclusive video on this coming very soon! On the other hand, Taxability under GST for the above transactions has to be seen whether JDA was executed on or before 31st March 2019 or afterwards. Since your JDA was entered into in 2018, you will be liable to pay GST at 18% when you receive possession of the constructed property. Team Clear
@@CleartaxIndia I had a JDA on 2013-14 financial year and I got my possession on Aug 2016. with this JDA I got 2 flats and some cash. but not sold any of them and so what be the solution. pls reply..
@@subhajitdas9619 Even if the new flats are not sold, Capital gains tax must be paid for the land/plot transferred for development. This is ideally tax on the land transfer. Capital gains= Sale consideration - Indexed cost of land. Here, sale consideration will be the stamp duty value of the flat as on the date of completion certificate+ money received. Team Clear
Is tax applicable for good will given by developers in jd.if so how to avoid tax?
Greetings,
I have couple questions, appreciate if you can help me by answering them.
1) Are their any tax implications/benefits of the land owner who is also part/director of the development firm.
2) Benefits of taking land on Partnership firm and developing instead of taking land individually and give for development to their own firm.
Please consult a tax expert.
Team Clear
Very good explanation madam
Thank you for your valuable feedback. Stay tuned for more videos.
Team Clear
Can you send pro-forma of joint development agreement.
Hello Ma'am I have a query about the link that you share
What is the TDS procedure and which has to be filed for sec 194IC
Hi,
I have a few queries from the example you shared;
1. As per JV, 6 flats are given to landowner and 4 flats retained by developer. Assuming, developer selling those 4 flats, will there be any LTCG liability on landowner for those 4 flats as well?
2. Assuming there is no transfer of land takes place. JVA says landowner gives POA to developer to construct 10 flats and then handover 6 flats to landowner for self use. No other cash consideration. Will there be incidence of LTCG and if yes, how? Can it be shown as the landowner has bought the 6 flats from the developer and hence he has invested the entire consideration in procuring the new flats which is eligible for LTCG exemption U/s 54F?
3. Landowner sells 4 flats out of the 6 flats received as per JV to outsiders and retains 2 flats for self use. In such case how LTCG will be calculated?
Please refer to this page for a detailed explanation along with examples: cleartax.in/s/section-45-5a-of-income-tax-act
Team Clear
I have a plot land measuring 2800 Sq.ft. I proposed to give for JDA. Agreed ratio is 50:50. So I will get 3 flats and no cash. Whether Capital gain is there ?
Yes, since you are selling the land, capital gains will arise only after you receive the flats. Please refer to this article for complete details along with examples: cleartax.in/s/section-45-5a-of-income-tax-act
Team Clear
Hello Ma'am I have a query about the link that you share @@CleartaxIndia
kindly guide for taxation in the hands of the land owner if the JDA is done prior to 1.4.2017
Hi, prior to 1.4.2017, the land owner had to pay tax on the date of execution of JDA. However, this is a heavily litigated matter.
Team Clear
Great Explanation....❤❤❤❤❤
Thank you for your valuable feedback. Stay tuned for more videos.
Team Clear
If the Land owner is Partnership firm then what will be the outcome?
Madam this information is already there in Google. Better if you could add more value to viewers.
Thank you for your valuable feedback. We shall work towards it.
Team Clear
Pls guide me about taxation of flats sold received under JDA. Whether they are taxed under Capital gain or business income.
It will be taxed under capital gains.
Team Clear
Hello madam, should I make a JDA with builder if I'm getting ONLY CASH as consideration at the time of issue of completion certi. If not JDA, what type of agreement I should ask for.
Yes, you can take only cash as consideration in a JDA. JDA can have both cash and share of land as a consideration or only cash/share of land as consideration. If you are taking cash, take the amount of sale consideration of the project.
Team Clear
We bought land for 70 lakh in 2013 and gave it to builder for development in 2014 for 7 flats in return, builder completed flats with completion letter in 2020 and transferred to us in same year 2020, valuation of 1 flat now is 30 lakhs, so can you plz tell me how much tax do we have to pay on 2.1 cr (total valuation of 7 flats now)
Please reply 🙏
Please contact us at enquiries@cleartax.in, or visit cleartax.in/services/tax_filing/c for a live chat with our experts on ITR filing.
Team Clear
what if the individual has received some part of the consideration in cash and that too in installments during the construction period. how & when this cash received will be taxed. is the total cash received to be added only at the time of incidence of CG i.e. at the time of completion?
Yes. Please refer to: cleartax.in/s/section-45-5a-of-income-tax-act
Team Clear
@@CleartaxIndia how taxation works in case of redevelopment of a society? When would tax liability wl arise?
I got security deposit from developer but project yet to be start, security deposit is adjustable in future, I want to know security deposit is taxable?
It will be taxable in the year of completion of the project.
Team Clear
Mam please can u tell me that , who can kept orginal JDA agreement papers land owner or developer ? Land owner should keep wich important orginal documents and papers after JDA ? Please reply
The developer will have the original JDA agreement papers. The owner will have the original land papers or title, such as the sale deed, encumbrance certificate, tax-paid receipts, etc.
Team Clear
Nice video!
I have a problem. A registered JDA, and a separate agreement for sale was made of my share of one flat. But the developer sold it without my knowledge but paid me the money. The agreement was not registered.
Since he didn't hand over my share and I naturally didn't pay stamp duty, how will this transaction be treated?
Ideally, the landowner is investing in New Residential Flat against Transfer of Land. Can he claim exemption u/s 54F for sale of such land ?
It will be taxed under capital gains.
Team Clear
yes.. u can claim exmdeption but entire consideration to be invested not capital gain alone and at the time transfer of land the assessee should not own more than one residential house apart from the one which the assessee is planning to buy to claim exemption.
Hello madam, If the JDA happened prior to 1.4.2017. Does the land owner need to pay Capital gain taxes at the time/year of JDA or after the certificate of completion ?
Will the new section 45(5A) be applied to the older JDA's as well ?
Please refer to this article: cleartax.in/s/income-tax-on-joint-development-agreement
Team Clear
please tell me what is the application of stamp duty on joint development agreement?
Stamp duty varies from state to state. You may use an online calculator to find out.
Team Clear
Can we claim exemption on this LTCG and if so what are they?
You can claim an exemption under Section 54 and Section 54F. For further information, write us at support@cleartax.in.
Team Clear
Mam agr land was acquired 1 yr ago
The treatment is same or not
The treatment will remain the same.
Team Clear
Explained nicely but audio not clear
Hello mam, If I have received some money and 2 flats from developer with the JDA and after completion of project I got my flat but not sold any of them, so is there will be any Capital Gain tax?? Pls reply.
@Subhajit Das, please note that capital gain is chargeable to tax in the year in which the transfer takes place except in certain cases. However, in the case of JDA, capital gains tax is payable in the year in which the possession of the immovable property is handed over to the developer for the development of a project. Stay tuned to our channel for an exclusive video on this coming very soon!
On the other hand, Taxability under GST for the above transactions has to be seen whether JDA was executed on or before 31st March 2019 or afterwards. Since your JDA was entered into in 2018, you will be liable to pay GST at 18% when you receive possession of the constructed property.
Team Clear
@@CleartaxIndia I had a JDA on 2013-14 financial year and I got my possession on Aug 2016. with this JDA I got 2 flats and some cash. but not sold any of them and so what be the solution. pls reply..
@@subhajitdas9619 did you get answers for your question? If flats are not sold , do you still need to pay capital gains tax?
@@manlymadhu No .
@@subhajitdas9619 Even if the new flats are not sold, Capital gains tax must be paid for the land/plot transferred for development. This is ideally tax on the land transfer. Capital gains= Sale consideration - Indexed cost of land. Here, sale consideration will be the stamp duty value of the flat as on the date of completion certificate+ money received.
Team Clear
Very well explained. I have some questions do you have contact details.tks
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