With regard to the sale of land (SIT) in proportion to the built-up area received by the owner of the land, it is considered to be sold/carried forward when this built-up area in the form of dwellings/units is finally sold by the owner of the land to final customers. As a result, capital gains and operating profits are taxed in the year of the actual sale of the dwellings/shares concerned. 1. The calculation of the capital gain in the case of the development of immovable property with a contracting authority has been issued a vexed. Admittedly, the general principle of the calculation of surplus value, that is to say the `counterparty` minus `costs`, applies, but the difficulty lies in the determination of `costs` and `consideration` as the two variables necessary for the calculation of surplus value. Liability for the deduction of TDS Therefore, a new section 194-IC has also been added in order to deduct the Finance Act until 2017 in order to deduct TDS on the monetary consideration. This section terminates the provisions of Section 194-IA of the Act, which provides for the deduction of TDS @ 1% for the transfer of real estate if the consideration rs is greater than 50 Lakhs. According to Section 194-IC, if, under a joint development agreement, a developer pays an amount to the owner of the land in addition to the share of the project, that developer must deduct TDS @ 10% of that payment. Generally speaking, there may be several phases or events resulting from a joint development agreement between the land owner and the developer. To determine the actual date of transfer of the country by the landowner, all these phases/events must be analyzed collectively and, after assessing the overall impact of it, we can determine the actual date of transmission. These phases/events can be described as the date of completion of the JDA, the date of execution of the power of attorney authorizing the developer to obtain various authorizations/authorizations, etc., the handing over of ownership of the land to the developer for various purposes, the receipt of partial/full sale underperformance by the developer, the date of execution of the power of attorney in favor of the developer who authorizes him at his discretion to sell the developed units to customers; and the delivery of developed units to customers, etc.
There may be other phases/events to close the transaction. However, an isolated event can trigger the transmission process, but not necessarily complete it. The analysis of the interaction and impact of all these phases / events makes it possible to determine whether the transfer took place for the most part and to determine together. For example, ownership can be given for different purposes, namely. Ownership given to a contractor or tenant, but such an event cannot be considered a “transfer” of land. Ownership of land may be transferred as a licensee only for the purpose of developing immovable property on land. Again, it must not result in “transmission”. Therefore, if ownership is transferred to the developer, along with other legal rights, which give rise to a right of the developer to the full use and use of the property, as well as to the continuation of its sale in operated units, this may lead to a “transfer”, provided that other conditions also suggest. The handing over of ownership must therefore necessarily be linked to the intention to transfer to the developer the rights of ownership and enjoyment of the property. The surrender by the landowner of the property for the limited purpose of land development, while retaining ownership and controlling various legal rights in the land, would not fall under section v of Article 2 (47). .