Taxability of Joint Development Agreement under Income Tax law

• September 20, 2020
• CA Chandan Agarwal's Office

Taxability of Joint Development Agreement (‘JDA’) under Income Tax Law

Joint Development Agreement (‘JDA’) is the most common and popular form of arrangement for constructing properties in our Country. It is a preferable form both to the Developer and to the Landowner. But there are some issues regarding the taxability of JDA under Income Tax Act, 1961 (‘the IT Act’).

Taxability in the hand of Developer-

The income arising to the Developer under a JDA, in the form of sale consideration of his share in the developed estate is considered as his ‘business income’ and is taxed as per the applicable provisions. 

Read more on: https://taxguru.in/income-tax/taxability-joint-development-agreement-income-tax-law.html