Free tool · JDA landowners · Every rule cited
JDA Capital Gains Calculator — s.45(5A) deferral, rate election, s.194-IC
Model the landowner's capital gain under a Joint Development Agreement: the individual/HUF + registered-agreement gates for deferral, the pre-CC transfer trap, the 12.5%-no-indexation vs 20%-with-indexation election for pre-23-Jul-2024 land, s.54F/54EC rollovers, and the s.194-IC TDS credit. Computation runs entirely in your browser.
The landowner + the land
The JDA
Pre-CC transfer of share?
Rollover exemptions (optional)
s.45(5A) deferral applies — tax event postponed to CC year
Capital gain arises in FY 2027-28 (the year the completion certificate is expected), not in the JDA year. Full value of consideration = SDV of your share on CC date (₹3,00,00,000) + monetary consideration (₹20,00,000) = ₹3,20,00,000.
Lane A · 12.5% without indexation
LTCG ₹2,49,50,000 → taxable ₹2,49,50,000
₹31,18,750
★ Recommended (lower tax)
Lane B · 20% with indexation
Indexed cost ₹1,57,60,479 → LTCG ₹1,61,89,521 → taxable ₹1,61,89,521
₹32,37,904
Recommended base tax (before surcharge/cess)
₹31,18,750
s.194-IC TDS credit (10% × monetary)
₹2,00,000
Estimated balance
₹29,18,750
Cost of acquisition of the built units you receive (for a later sale) = the SDV of your share on CC date + monetary consideration — i.e. what got taxed here. Preserve the tax return and CC-date valuation.
TDS u/s 194-IC applies to monetary consideration only, at 10%, and does not reduce your capital gain — it is only a credit against tax.
s.54F carries a ₹10 crore eligible-investment cap (post-FA 2023) and applies only to individuals/HUFs. s.54EC is capped at ₹50 lakh; invest within 6 months of transfer.
Rate election (20%-w-index vs 12.5%-w/o-index) is available ONLY to resident I/HUF, on land/building acquired BEFORE 23-Jul-2024, transferred on or after that date — s.112 as amended by FA(No.2) 2024.
The proviso to s.45(5A) accelerates the entire gain to the pre-CC transfer year; a later CC issuance does NOT create a second charge.
FAQ
Who can use s.45(5A) deferral?
Only INDIVIDUAL or HUF landowners under a REGISTERED specified development agreement. Firms, LLPs and companies are outside s.45(5A) — their gain is taxable in the JDA year under s.45(1). An unregistered JDA — even for an individual — also fails the "specified agreement" test and lands in the JDA year.
When does the gain actually become taxable?
In the PY the completion certificate is issued for the whole or part of the project by the competent authority — that is the deferral s.45(5A) provides. If the landowner transfers their share BEFORE the CC (any built-up unit or land right), the entire deferral is lost and the gain accelerates to the year of that transfer under the proviso to s.45(5A). A later CC does not create a second charge.
What is the "full value of consideration" under s.45(5A)?
The stamp-duty value of the LANDOWNER's share of the project (the built units they receive) on the date of the CC, PLUS any monetary consideration received under the JDA. That total replaces ordinary sale consideration for the s.45(5A) computation.
Which rate applies — 12.5% without indexation or 20% with indexation?
For transfers on or after 23 July 2024, land LTCG is 12.5% without indexation (s.112 as amended by FA(No.2) 2024). Resident individuals and HUFs with land acquired BEFORE 23-Jul-2024 can pick the lower of 12.5%-no-indexation vs 20%-with-indexation — a genuine election. Post-cutoff acquisitions have no such choice.
What TDS applies?
s.194-IC — 10% on the MONETARY consideration paid by the developer to the landowner. No TDS on the in-kind portion (built units). The TDS is a credit against your tax; it does not reduce the capital gain.
Can I claim s.54F or s.54EC against a JDA gain?
Yes, subject to the usual conditions. s.54F (₹10 crore cap post-FA 2023, one residential house, individual/HUF only) and s.54EC (₹50 lakh cap, notified bonds within 6 months of transfer) both work — the timing anchor is the transfer event (CC year for a s.45(5A) case, or the JDA/pre-CC transfer year otherwise).
What becomes my cost of the built units when I eventually sell them?
The value already taxed under s.45(5A) — SDV of your share on the CC date + monetary consideration. Preserve the tax return, valuation and CC-date documents; without them, the same economic value gets effectively taxed twice.
Before you sign the JDA
Harun Raaj & Associates · Chartered Accountants, Visakhapatnam. Model the deferral, rate election, TDS and rollover deductions BEFORE signing — the tax cost is decided at the agreement stage, not at return-filing time.
Book a JDA-structuring review →Educational tool, not professional advice. Base-tax figures exclude surcharge and cess. Actual tax depends on total income, deductions, regime and rollover timing. CII values use the CBDT-notified table. Consult a chartered accountant before signing the JDA or filing.