Capital gain on development agreement

The taxability depends on the structure of the development agreement. if possession is handed over to developer thorugh a POA or othersie then section 58A of he Transfer of property act will apply and the transaction will be treated as transfer under 2(47). in such a case capital gains will be attracted on the date the possesion is handed over.

If ownershp and possession is retained till completion of construction then capital gains will arise on transfer after completion