Mohan, the owner of piece of land at Chennai, entered into an agreement with Reality Builders as a Joint Development Agreement for construction of a housing complex. He is desirous to seek your opinion in the context of

Capital Gain under Joint Development Agreement: As per section 45(5A) of the Income Tax Act, 1961, Capital Gain in case of Joint Development Agreement shall be applicable, if the following conditions are being satisfied: The assessee (who is the owner of land / building) is an individual or HUF. There is transfer of a capital asset, being land or building or both. The assessee has entered into "specified agreement" with a builder / joint developer for development of housing project. "Specified agreement" means a registered agreement in which a person owing land or building or both, agrees to allow another person to develop a real estate project on such land or building or both, in consideration of share, being land or building or both in such project, whether with or without payment of part of consideration in cash.