Who it applies to
Developers, landowners in JDAs, housing societies in redevelopment and their members, and homebuyers with capital gains questions.
Key provisions
| Area | Position |
|---|---|
| GST, affordable residential (under construction) | 1%, no input tax credit |
| GST, other residential (under construction) | 5%, no input tax credit |
| GST, units sold after OC/CC | Not a supply; no GST |
| JDA capital gains for individuals and HUFs | Taxed in the year of the completion certificate under a registered JDA: s. 45(5A) of the Income-tax Act, 1961, with a corresponding provision in the Income-tax Act, 2025 |
| TDS on JDA monetary consideration | s. 194-IC of the Income-tax Act, 1961; now s. 393(1) of the Income-tax Act, 2025 |
The Income-tax Act, 2025 replaced the 1961 Act from 01-04-2026. FY 2025-26 and earlier years remain under the 1961 Act. GST rates shown are those in force after the 22-09-2025 rate rationalisation.
Documents required
Development or JDA agreement, project cost and revenue workings, GST registrations and returns, sale agreements and receipts, prior assessment orders, and cost of acquisition records for landowners.
Timeline
GST returns monthly or quarterly; income-tax return and tax audit as per the year's due dates; advance tax quarterly. JDA planning before the agreement is signed and registered.
Consequences of non-compliance
Wrong GST classification on mixed projects leads to demands with interest and penalty.
Unregistered or poorly drafted JDAs lose the capital gains deferral.
TDS defaults on JDA consideration attract interest and disallowance.
How we help
- JDA structuring and capital gains for landowners and societies
- GST classification, rate and compliance for residential, commercial and mixed projects
- Project-wise accounting that ties to RERA reporting
- Assessments, notices and appeals
Signing a JDA or redevelopment agreement?
Request a consultation before it is registered.
Content as at 27-10-2026. General information only, not professional advice; see our Disclaimer.