Taxation in the hands of Landowner under JDA

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This discussion clarifies the tax implications for landowners selling their share of flats under a Joint Development Agreement (JDA) before the project's completion date. Capital gains tax is generally due in the year possession of flats is received or a completion certificate is issued. However, if flats are sold prior to completion, the tax liability shifts to the year of the flat sale.

Nagaraj

Nagaraj (Querist)
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11 July 2026 Hi
When landowner sell his share of flat on or before the completion date when he should file income tax return and declare capital gain income?
Section of the proviso says when the capital gains shall be deemed to be the income of the previous year in which such transfer takes place.. what is which transfer refers to flats or land it decides the year of chargeability, can some one help me with this

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 July 2026 Capital gain over the sale of the land under JDA is generally payable in the year of receiving the possession of the flats or receiving the completion certificate; provided the flat/s are not sold earlier. But if sold earlier (as in your case), the liability gets transferred in the year when the flat are sold (before completion).

Nagaraj

Nagaraj (Querist)
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21 July 2026 Yes sir, Thanks for reply
The year of taxabality is the year of sale of flats before completion certificate as per the proviso of the section 45(5A)
then what is the transfer date under computation of capital gain
purchase date is land purchase date

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 July 2026 Transfer date is the date on which flat sold.

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