Description
Taxmann Taxation of Real Estate Developers and Joint Development Arrangements with Accounting Aspects 8th edition by Raj K. Agarwal and Rakesh Gupta
This book is a specialised treatise offering in-depth guidance on the taxation of real estate development projects, especially those undertaken through Joint Development Arrangements (JDAs). It addresses the most intricate tax scenarios arising from real estate transactions. Updated to reflect changes introduced by the Finance Act 2025, this book extensively covers evolving income-tax provisions, accounting aspects, and judicial precedents related to real estate developers, landowners, and other stakeholders involved in JDAs. The text serves as a one-stop reference for professionals seeking clarity on complex issues, including revenue recognition, capital gains, business income, ICDS, and the newly introduced/amended provisions such as section 45(5A), section 50C, section 43CA, section 56(2)(x)(b), section 23(5), and section 80-IBA.
This book is intended for the following audience:
Chartered Accountants, Company Secretaries, and Cost Accountants – Professionals requiring detailed guidance on complex tax and accounting treatment for real estate JDAs, capital asset transactions, and revenue recognition
Lawyers, Tax Advocates, and Legal Practitioners – Experts practising before Income Tax Appellate Tribunals, High Courts, and the Supreme Court of India who need a legal-cum-practical viewpoint on real estate taxation
Real Estate Developers, Landowners, and Builders – Stakeholders seeking clarity on structuring JDAs, deciding the timing of tax liability, and adopting the correct method of revenue recognition for projects
Tax Officials and Policy Makers – Officers and policymakers aiming to understand the intricacies, judicial interpretations, and practical scenarios in real estate taxation
Academicians and Researchers – Students, lecturers, and researchers exploring the complexities of real estate taxation, especially in the context of new legislative amendments and judicial developments
The Present Publication is the 8th Edition | 2025, amended by the Finance Act 2025. This book is authored by Dr Raj K. Agarwal & Dr Rakesh Gupta with the following noteworthy features:
[Latest Amendments] Fully updated to include changes introduced by the Finance Act 2025 and recent judicial pronouncements impacting real estate taxation
[Authoritative Analysis] Authored by two highly experienced professionals with decades of practical and academic exposure in tax law, corporate law, and accounting
[Practical Insights and Case Studies]
Discussion of practical scenarios, complex transactions, and wide-ranging judicial interpretations
References to landmark court decisions (ITAT, High Courts, Supreme Court)
[Detailed Discussion on Section 45(5A)] Thorough analysis of section 45(5A) relating to capital gains in JDAs, including controversies and unresolved aspects
[Coverage of Deeming Provisions] Sections 43CA, 50C, 56(2)(x)(b), 23(5) are thoroughly analysed, with insights into how these provisions influence real estate transactions and how to handle them
[Accounting Nuances] Explains the interplay of ICDS, Accounting Standards (AS-7, AS-9), Guidance Notes on Real Estate Transactions, and IFRS 15 as they apply to revenue recognition, cost allocation, and profit determination
[Focus on Affordable Housing] A dedicated chapter on section 80-IBA detailing the conditions and benefits of claiming deductions for affordable housing projects
[Comprehensive Structure] A logical chapter-wise approach addressing issues for both developers and landowners—from fundamental principles to advanced topics like capital vs. business assets, TDR, and breakdowns of JDAs
The coverage of the book is as follows:
Chapter 1 – Joint Development Arrangement for Real Estate
Nature of JDAs, different forms, key factors in drafting agreements, significant income-tax issues from both owner's and developer's perspectives
Chapter 2 – Tax Issues for Real Estate Developers
Detailed discussion on revenue recognition methods (Completed Contract Method vs. Percentage of Completion Method), judicial controversies, inventory valuation, taxability of rental income from stock-in-trade, and more
Chapters 3 & 4 – History and Analysis of Guidance Notes & Accounting Standards
Evolution of AS-7, AS-9, and ICAI Guidance Notes, plus the intricacies in applying these to real estate transactions
Chapter 5 – Revenue Recognition Under IFRS
Examination of IFRIC 15 and IFRS 15 frameworks for real estate developers, including global best practices
Chapter 6 – Impact of Income Computation & Disclosure Standards (ICDS)
How ICDS III (Construction Contracts) and ICDS IV (Revenue Recognition) affect computations for real estate developers in tax returns
Chapter 7 – Tax Issues for Real Estate Owners
Differentiating capital vs business assets, year of transfer, capital gains computation, analysis of newly introduced section 45(5A)
Chapters 8 to 13 – Specific Provisions & Topics
Extensive review of capital vs business asset classification, section 45(2) on the conversion of capital assets into stock, the broad scope of "transfer" under section 2(47), section 50D on fair market value, and taxability of agricultural land
Chapter 14 – Analysis of Section 50C, 43CA, 56(2)(x)(b), and 23(5)
Deep insights into deeming provisions, safe harbour rules, and issues surrounding undervaluation/overvaluation in sale transactions
Chapter 15 – Section 80-IBA
Conditions for claiming tax deductions on affordable housing projects, project completion norms, and the interplay with other real estate provisions
Appendices
Includes relevant Accounting Standards (AS-7, AS-9, AS-27), extracts from IFRS, the full text of ICDS, notifications of Urbanisation, and other statutory references
List of Cases
A comprehensive table of judicial decisions cited throughout the text, facilitating quick reference and research
The structure of the book is as follows:
Logical Progression – Begins with the fundamentals of JDAs, transitions into the accounting and tax concepts applicable to developers, then delves into landowner-specific issues
Thematic Chapters – Each chapter builds on a core theme—ranging from accounting to specific legislative provisions—making the book equally accessible to new readers and professionals needing targeted information
Appendices & Case Index – Conclude with statutory appendices, relevant notifications, accounting standards, and a meticulously curated list of major case laws for ease of reference