Page Contents
The Income Tax Department’s recent focus on capital gains tax compliance under Section 45(5A) of the Income Tax Act emphasizes the importance for landowners (individuals and HUFs) involved in Joint Development Agreements to meet their tax obligations. Here’s a breakdown:
Trigger Point for Tax Liability: The capital gain is taxed in the year the developer receives the completion certificate from the local authority, not at the time of entering into the JDA.
To ensure tax compliance in JDAs, Section 194IC was also introduced by the Finance Act, 2017. Developers must deduct TDS on any monetary consideration paid to the landowner under a JDA. This TDS provision applies to payments made by developers to individual or HUF landowners in addition to the property share.
Rate of TDS:
Decode Your Permanent Account Number (PAN) Card This is a great breakdown of the PAN structure! You’ve explained it… Read More
GST on sale of all used cars, including electric vehicles The 55th GST Council meeting held on December 21, 2024,… Read More
Budget 2025: Amendment in carry forward of losses 72A & 72AA This amendment is a significant move by the government… Read More
Post Budget 2025: Applicability of Sec 87A on old & New regimes In this blog explain the impact of Budget… Read More
Statutory Compliance Calendar (Due Dates) for the month of January 2025. In January 2025, businesses in India must adhere to… Read More
Cabinet approved New Income Tax Bill to replace Old tax Law The Union Cabinet has approved a new Income Tax… Read More