It on refundable int. free deposit on devlelopment of land

 Mr.X is the regd POA holder of family of a. b , c , d , he owns a Non agri.Land in the city, intends to give it to a developer Mr.LMN ,for making apartment , on 50 % basis ( 5 units out of 10 will be  belonging to Mr.X-owners share ) alongwith a interest free  depost of  40 lacs, How to  show this 40 lacs  in the coming assessment year , as income ?  if yes ..then under which head ? if No.....a s he has o refund after  that building becomes ready for occupation , interest so genearted will be traeted as business income or simple interest ?  as well as, later on  he also intend to sell those 5 units ( as land owners  share) in the market, whether it will a business income or Capital gains ?