Ques: Does the amendment also apply to agreements reached before 01.04.2017? The property law sold by the owner is a capital property under the Income Tax Act 1961 and derives capital profits from its sale on the basis of a cooperation agreement. In a cooperation agreement, the owner of the property enters into an agreement with the owner/promoter to demolish and rebuild the owners` land and sell part of the new land to the owner (for example. B one or more floors) and to keep the other parts with him after the renovation. – Before the amendment of paragraph 54F by Finance Act 2014 w.e.f. A.Y. 2015-16, there are many judgments that say that the u/s 54F deduction is kept on more than one dwelling under a development contract. However, the amendment limited the benefit to a single dwelling house. (see TAV Gupta vs ITO  93 taxmann.com 249 (Bangalore), Ms Adeebunnisa Begum Vs ITO, ITA 816/2017 (Hyderabad), etc.] H. Examples of Judicial GAAR apply to development agreements: Mon Borther (developer) concluded in August 2012 a cooperation agreement with the landowner for the interpretation of his land. We have to build basements, soils, the first and the second. On makinf grinding, my brother (developer) will be first floor and second floor and the owner of the property will receive Basement plus the ground floor. It is more prudent to recognize the business gains and capital gains at issue during the conversion, both during the year in which the notator obtains full and unconditional ownership of his share of the built land as well as the business gains and capital gain in question.
Although the ITS has not yet been sold in the form of housing/stores, etc., the transfer of SIT in the form of land proportional to the built area that the developer retains may be completed in the year in which the developer completed the project and give it the auditor`s share of the built area according to the situation (2) in the table above. In this case, to determine the revenues of the main transaction, the transfer of SIT (i.e. proportional area received by the promoter) to FMV may be considered from the construction area allocated for evaluation during the award year. (vi) any transaction (through the accession or acquisition of shares in a cooperative, company or other group of persons, either by agreement or by other means) that results in the transfer or enjoyment of a property. – At the end of the project, Mr. X is entitled to 60% of the built-up area in the project in the form of housing/shops, etc. according to the timetable to be agreed If the owner of the property sells his portion of the property he acquired under the cooperation contract within three years of the acquisition, then the owner`s exemption for the construction of real estate in the year of the sale of his part is cancelled and the income is considered a short-term capital gain in the year of sale.