With the introduction of a new section 45 (5A) in the IT act 1961, assessees cannot avail the benefit of sec. 54 EC in respect of cash portion of LTCG of Jont developemt venture agreements where the registration of Jont developemt venture agreements takes place in a FY and the completion certificate of the new asset ina diffrent FY. Can u please confirm
Correct
As per Section 45(5A) the captal gain arising from transfer of land or buidling as increased by the amount of cash consideration if any received shall be taxed in the year in which the Certificate of completion is received. Hence the date of registration of JD agreement is irrelavent to determine the year of taxability of capital gain. So the benefit of section 54EC shall be applicable in such case.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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