In order to minimize the true harshness that the landowner may have to face when paying capital gains tax during the transfer year, a new subsection (5A) of Section 45 of the Act has been inserted by the Finance Act 2017 to provide that, in the case of an individual or Hindu evaluation group that enters into a specific agreement on the development of a project, capital gains are charged to income tax as income from the previous year, during which the certificate of completion of all or part of the project is drawn up by the competent authority. However, the provisions of this subsection do not apply when the notator transfers his share of the project`s participation on or before the date the certificate is issued. The purchaser of the property is required to deduct TDS up to 1% of the total consideration under Section 194IA, while the seller is in default. However, a tax is not deductible if the consideration is less than 50 LakhS. In your case, if the total amount of the sale of the apartment is less than 50 Lakh Rs, you are not obliged to deduct TDS. However, if you have a joint development agreement with the Seller, the liability is to deduct 10% of SDS for the monetary consideration (i.e. other than the cash) during payment. As a result, a new 194-IC section has also been inserted into a comprehensive finance law until 2017, in order to deduct TDS from monetary counterparties. In this section, the provisions of Section 194-AI of the Act, which provides for the deduction of TDS of 1% for the transfer of real estate when the consideration exceeds 50 Lakhs, are repealed. Under Section 194-IC, each developer pays an arbitrary amount to the landowner under a joint development agreement, in addition to the project,000 TDS contractor deducts 10% of that payment.
I am NRI and I have registered a JDA with a contractor. Under the agreement, he will pay 65 lakhs and four apartments. If the amount is indicated in increments, if the TDS were to emerge? Can TDS be deducted during the last installment? ITAT indicated that Section 20 of the Indian Contract Act of 1872 warned that the agreement was void if both parties to an agreement were to be made of an error in fact, essentially for the agreement. Therefore, the agreement is not disputed on the basis that the notator acted in respect of subcontractors in the contractor`s status. The issue of the SDS cannot be considered solely on the basis of agreements between the notator and its partners. Therefore, if the payments were subcontracted by the notator due to a real misunderstanding, this should not give way to the undue enrichment of the revenue. Responsibility u/s 194C (2) is imposed on examiners only if they do act and on the merits within contractors and subcontractors. Where it is established that they are acting jointly for the purposes of their contractual activities, there can be no relationship between the contractor and the subcontractor and there can be no opportunity to avail themselves of Section 194C (2). Will this Capital Gains Finance Act be applicable in 2017 to agreements reached before 2017? I booked an apartment with agreement for the sale of Rs 25 Lakh and contract to build Rs 30 lakh. Do I have to pay TDS?- Rohit Waghmare Joint Development Agreement is a registered agreement in which a landowner allows a developer to develop a real estate project.