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How revenue is recognised on transferable development rights

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(Querist)
27 April 2016 How revenue is recognized when developments rights of land are transferred for the future consideration like some % of sale of built up area ?
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Amol S Joglekar

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Amol S Joglekar (Expert)
27 April 2016 The language of the agreement to transfer plays a crucial role in such cases. Many a times it so happens that the transfer of the TDS takes place immediately and the payment is received in subsequent years. The care be taken to draft the transfer agreement in consultation with a good income tax consultant
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