Under a joint development agreement, delivery of possession...

Under a joint development agreement, delivery of possession solely for development does not trigger a taxable transfer unless it involves title, consideration or part performance under the Transfer of Property Act. For eligible individuals or HUFs, capital gains may instead arise when the completion certificate is issued. Consideration for land transferred is determined by the stamp duty value of the completed built-up area received, not the developer's construction cost. Multiple allotted residential flats may qualify as investment in a residential house for capital-gains exemption. On later sale, the flats' cost corresponds to the value used at initial taxation, and their holding period runs from the occupancy certificate. Deemed annual value applies only to stock-in-trade, not capital assets.