A joint development agreement (JDA) between two or more companies is a legal agreement defining terms of a project designed to jointly promote or develop a product or service and enjoy the benefits accruing in the process and later on.

The JDA has to be registered by paying the appropriate stamp value and also an irrevocable General Power of Attorney (POA) has to be executed in favour of the developer by the owner.

Now, there will certainly be a question in the mind of the reader whether this is a capital gain or a business income?

Since there is a capital asset (land) being transferred, it will attract capital gains.