Capital gain on devolopment agreement
Priyanka (Chartered accountant) (371 Points)
30 July 2015Priyanka (Chartered accountant) (371 Points)
30 July 2015
Rajagopalakrishnan R
(PARTNER)
(1422 Points)
Replied 30 July 2015
The development agreement should be accompanied by constructive transfer of possession to the developer so that the provisions of Sec 58A of the transfer of property act is given effect. Once this is in place, the date of incidence of the capital gains would be the year in which the agreement is entered and possession of property handed over. In this case if the possession was already handed over, then the capital gains must have been disclosed in 2006 itself.