The main cause of accounting is only in the books of the owner and developers. Let`s talk one by one. On 27-7-17, we signed a 100/- stamp paper agreement that the owner will give 40 lakhs as a refundable deposit to the owner of the land, which will be refunded in the form of cash or order type. By dropping an apartment. By division, the master of the country received 9 apartments, and the owner received 11 apartments. On 28-7-18, the JDA was registered. To put the agreement in order, the refundable deposit was paid in the form of a non-refundable deposit and only 8 apartments were handed over to the owner of the country and 12 apartments were taken by the owner. The work will be completed by 2019. The master received 40 lakhs in the form of a non-refundable deposit. How this is treated in capital gains. ITAT Hyderabad found that while nothing happened in the previous year in question, with the exception of the implementation of the agreement or the absence of progress or construction work, it could not be considered that the proponents had complied with their obligation under Section 53A of the Transfer of Ownership Act. At the end of the reference period, the company will not be able to count revenues as an appropriate level of construction representing 25% of the total cost of construction, although 10% of the contract amount has been realized. 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. In the absence of specific JDA accounting standards or guidelines, we must protect ourselves after LA 7, 9 and Revised Guidance Note on Accounting for Real Estate Transaction (Revised 2012) issued by the Institute of Chartered Accountants of India to account for JDA transactions.