Ref : capital gain tax on joint development date

This query is : Resolved

Thejesh K (Querist)
Follow

18 March 2015 Dear Sir ,

I have query is regarding the capital gain tax to be considered on Joint development date or the date of converted lands from agricultural lands to residential lands.

The date of JDI is 11/8/2003 & the conversation date is 11/11/2003 . So what is my capital gain tax for the year ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

18 March 2015 pls mention more details of joint development.........

Thejesh K

Thejesh K (Querist)
Follow

19 March 2015 Hello,

The joint development was signed on 11/Aug/2003 , during the time of agreement it was agricultural lands . The agricultural lands was converted to residential lands on the same year at 11/Nov/2008 .

So, my question is the capital gain tax to calculated on date of Joint development or on converted lands .
If , I need to calculate the capital gain on Joint development . Any case laws available ?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

20 July 2025 Your query relates to capital gains taxation in a Joint Development Agreement (JDA) scenario, where agricultural land is converted to residential land, and a JDA was entered into before conversion.

Let’s break down the situation:

✅ Facts:
Date of JDA (Joint Development Agreement): 11-Aug-2003
Date of conversion to residential land: 11-Nov-2003
Nature of land at time of JDA: Agricultural
You are asking: From which date is capital gain taxable — JDA date or land conversion date?
🧾 Key Legal Framework:

1. Section 2(47)(v) of Income Tax Act:
Defines a "transfer" to include allowing possession under part performance of a contract under Section 53A of the Transfer of Property Act — commonly applicable to JDAs.

If possession is handed over and consideration is in a certain form (cash, flats, development rights), then transfer is deemed to happen on that date, even without formal sale deed.
🟠 So if you gave possession to the developer on 11-Aug-2003, capital gains may arise in FY 2003-04 (AY 2004-05).
2. Nature of Asset: Agricultural vs Capital Asset
Agricultural land in a rural area is not a capital asset, hence no capital gains tax arises on its transfer.
If it is urban agricultural land, then it is a capital asset.
✔️ Check whether your land was in urban area or rural area as per Section 2(14) at that time.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SHUBHANGI GOEL

Shailesh Prajapati

Adesh Mahajan

Angadi & Co

Jaipal Singh

Subscribe Now

Ref : capital gain tax on joint development date

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Article Assistant

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant