Taxation of Land owner under JDA where consideration received by the Developer and Conforming Party

Save Share

This query is : Resolved

Quick Summary

A landowner entered into a Joint Development Agreement (JDA) and granted Power of Attorney (POA) to a Developer and Conforming Party. While the landowner expects to pay capital gains tax on the land transfer, they are concerned that all sale consideration is appearing under their PAN in the Annual Information Statement (AIS). The advice suggests this is because the conforming party acted as a POA holder on their behalf, and recommends rectifying the AIS by indicating the developer's portion pertains to them, along with their PAN.

Tapash Kumar Biswas

Tapash Kumar Biswas (Querist)

06 November 2025 We have entered a JDA for construction of Residential Flat and issue the POA to Developer and Coforming Party in the FY 2022-2023 for doing the needful. The Ratio is 45% & 55%.

We have received a sum of consideration from the Developer in the FY 2022-2023 to 2024-2025.

After construction the Conforming Party (Buyer) start to sell the flats after execution of proper agreement duly signed by us as a Land owner, Developer and Conforming Party and the whole consideration duly received by the Developer and Conforming Party.

But in the FY 22-23 to 24-25 we found that, every consideration executed by the Conforming Party reflect in the AIS under our PAN.

We know, there is a Capital Gain for transfer of Land to the Developer and we are ready to pay the liability .

Can any expert advice us, why the whole liability shown under our PAN and how to resolve it.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 November 2025 1. It is declared in your PAN. as the confirming party has acted on your behalf as POA holder.
2. For the amount of flats belonging to developer portion has to be rectified in AIS as 'pertains to developer (declare his PAN)' by filing feedback.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 November 2025 Good luck...

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