Effective date of transfer - transfer of property in joint venture

[Avaneesh Dvivedi]

WHAT IS the actual date of transfer as per IT ACT in the case of transfer of property in the case of joint venture. FACT OF THE CASE: Assesee made an agreement with a builder to cnstruct a space for him IN HIS LAND.The builder can develop the property as big building in the assessees land and can sell the balance blding space in consideration of such constructin for the asessee.Agreement was on 5-4-2003. The built up area was transfered on 15-5-2005.waht wil be the acua date of ransfer.whether date of agreement or date of getting the buildup space back.

[Surender Gupta]

It depend on the nature and manner in which agreements are being executed. Apparantly, actual date of sale of building space shall be the date of transfer of property.

AI Summary

Date of transfer depends on nature and manner; actual sale date governs tax treatment of property transferred in joint venture. Determination of the effective date of transfer for income tax purposes in a joint venture depends on the nature and manner of the contractual arrangement; the actual date of sale or transfer of the built up space is the operative date of transfer of property for tax purposes.