Advantage for landowners: landowners with little technical knowledge of real estate development can now benefit from a higher consideration when selling developed land than a simple sale of land. The company would be able to account for revenues at the end of the billing period. Recognition of turnover and profit would be as if under: in the calculation above, the developer takes into account the total cost of construction, including the owner`s share, by its share in units that do not take into account the basic costs. Three parties will be represented in the JDA`s accounts. Landowners, developers and buyers. As we know, the buyer will use the value of the asset as soon as he pays and will begin to depreciate it from the date of use in accordance with AS 6 and AS 10. A new section 194 – IC is introduced to provide that if a monetary policy counterparty is to be paid under the established agreement, the 10% tax is deductible from that payment. The transaction is carried out in net redemption terms only if the activity is exclusively the transfer of ownership or the transfer of ownership of real land. If the land sale transaction is related to another activity such as infrastructure work, this exclusion does not apply. Therefore, the content of the agreement between the parties is important. It is clear that the transaction between the landowner and the complainant`s developer is not a sale of land, but an obligation to develop the land and provide infrastructure/equipment. There is an element of service provided by the applicant in the form of a land development project, which is the dominant activity of the agreement. According to various judicial information, in the case of JDA, the capital gain is realized during the year in which an agreement is reached with the developer in connection with the possession of land.
However, there was no explicit provision in the Information Technology Act; but the courts have interpreted it as such. The issue was therefore the year of income tax capacity. Whether it is the year of the agreement or the year in which the landowner receives his share of the land from the developer.