Taxation of cash component in case of joint development agreement

CG in case of development agreement arises at the time of completion of the project as per sec 45(5A). But when the cash component is taxable if it is received in installments during the construction period?
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Quick Summary
This discussion clarifies the taxation of the cash component in a Joint Development Agreement (JDA) under Section 45(5A) of the Income Tax Act. Capital gains are generally recognised upon project completion. However, the query focuses on when cash received in installments during construction is taxed. The consensus is that the cash component is only taxable at the time of project completion, with amounts received earlier treated as advances.

Here taxation of cash component as per the details.

At the time of completion, only.

Till that time, it is treated as advance.

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