CBDT issues SOP to track capital gains from JDAs

The Central Board of Direct Taxes (CBDT) has issued a standard operating procedure (SOP) for assessing capital gains on joint development Agreements (JDAs) under Section 45(5A) of the Income Tax Act to plug revenue leakages in the real estate sector.

- MONIKA YADAV

According to the office memorandum issued by the tax department on September 15, the SOP requires field officers to use Real Estate Regulatory Authority (RERA) portals to identify JDA projects, match them with income-tax return filings, and check disclosures in the capital gains schedule.

In cases of nondisclosure, notices will be issued under Section 131(1A) to seek explanations and supporting documents.