IT -LTCG or Buss.Income- land for development basis and JV

Depend upon land owner's wish. Usually land owner takes it as investment, and wishes to assess any gains as LT capital gain.

 assume that land developer  wants to enter agreement with the land owner , what sort of agreement do you recommend ?

either LAND DEVELOPMENT or JOINT VENTURE, so  next qustion that arises,

(a) LAND DEVELOPER  is giving a notional amount of 10 % as  SECURITY as INTEREST FREE DEPOSIT,  ( refundable  back  to DEVELOPER after completion of the project)

LAND / PLOT is  NOT transferred  to  DEVELOPER, requsite statutory building  permissions  are in the name of OWNER, so LTCG will come to force for  SELL of resi.units ( 50%) when  LAND OWNER gets  possesion of it  and  SELL IT PROSECTIVE BUYERS at price suitable to him , where in which LAND DEVELOPER wil sign as CONSENTOR... so   How to calculate LTCG , as   LAND VALUE is Rs 3 lacs when  OWNER  got it , (2005) ....after 10 years  Development agreement was signed , when LAND VALUE  is of 25 lacs , (2015-16) and with IMPROVISATION EXPENDITURE  till those 10 years is 3 lacs,

 sales proceeds of 7 units ( 50% of 14 units) will come by 2019, at 180 lacs ,so how much may be LTCG or business income ?

Title of any agreement is immaterial, but the main clause in it. Generally Power of attorney is also given to Developer, and that is also verified, for the date of transfer of any rights of land.

When properly drafted, LT capital gains gets attracted when the possession of the flats are given to land-owners (after completion certificate). 

In this case, no taxability of refundable deposit, whatever may be amount; but LTCG liability after applicable indexation, will arise in 2019. (assuming properly drafted documents)