Circular No. 672/1993 — Joint development agreements — year of taxability
Date: 1993-01-01 Status: ACTIVE Category: Capital Gains Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)
Summary
In JDAs, capital gains arise in the year of handing over possession to the developer, not in the year of registration of sale deed.
Key Directions
- Capital gains arise in the year of handing over possession under JDA.
- Full value of consideration includes cash + value of constructed area.
- Cost of acquisition as of date of acquisition of land.
Applicability Under IT Act 2025
Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.
| Old Section (1961 Act) | New Section (2025 Act) | Consistent? |
|---|---|---|
| 45 | 67 | Yes |
Cross-References
Act Sections
- Section 45
- Section 67
Related Circulars
- None identified
Key Case Law (Circular Supremacy)
- To be populated — cases where this circular was cited/applied
Full Text
Full text to be added — see raw/circulars/ for PDF when available
Source
- Official: incometaxindia.gov.in/circulars