New amendments to joint development agreement in budget

Tax queries 241 views 5 replies

Sunil

manager

153 Points Joined August 2012

I had a JDA signed in 2013. Building should be complete with occupancy certificate in April/may.

Didn't offer capital gains in 2013. Based on scrutiny of builders accounts, got notice 131 from investigation team in dec.

Went through an auditing firm to respond quoting some case laws in favour of assessee and tax will be paid in 2017 after completion.

I was told usually dept will quote case laws in their favor to get taxes, but usually can convince them to wait as you don't have money to pay.

Now with the new proposal in budget, am I covered to offer capital gain after completion?

Also was there any clarity provided on how LTCG is calculated in case of JDA?

Replies (5)

There will be short term gain for every apartment I sell after completion. To make everything long term, if I wait for 2 years, should I pay tax on some notional rent? If so how to determine this notional rent?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

207976 Points Joined July 2016

"Now with the new proposal in budget, am I covered to offer capital gain after completion?"

Yes, provided its implemented with retrospective effect.

Sunil

manager

153 Points Joined August 2012

when will we have clarity on the fine print

Ravi Shankara

15 Points Joined December 2016

"Now with the new proposal in budget, am I covered to offer capital gain after completion?"

Can we claim exemption on capital gains by considering this new proposal for JDA enterred in finandial year 2013-14