Joint development agreement (JDA), which is currently the most prevalent form of land development in the real estate sector, will get a boost following the key tax reforms announced by finance minister Arun Jaitley in the Union budget on Wednesday.
This is also likely to help improve land transactions and bring in more supply of land into the property market that has been reeling under pressure for the last three years.
Jaitley has proposed that payment of capital gains tax for joint development projects will be in a year after the project is completed.
Holding period for long-term capital gains on land and buildings has been reduced to two years from three years while tax payment on notional rental income on completed residential projects has also been deferred by one year after receiving completion certificate.
Source: Live Mint