Real Estate & RERA Advisory Services in India – RERA Project & Agent Registration, Joint Development Agreements, SPV / JV Structuring, GST on Real Estate, Stamp Duty, Land Due Diligence & Capital-Gains Planning

Q: When must a real-estate project be registered under RERA?

Under RERA 2016, a promoter must register a project with the state authority before any advertising, marketing, booking, or sale, unless below the state threshold (often 500 sq m or 8 apartments). Agents register separately. Selling an unregistered project attracts heavy penalties.

Q: How are capital gains taxed on a Joint Development Agreement?

For individuals / HUFs, Section 45(5A) taxes capital gains on a JDA in the year the completion certificate is issued, using the stamp value of the owner's share plus cash as consideration. This defers tax from the agreement date. Companies, or owners who sell their share before completion, may be taxed earlier.

Q: What TDS applies when buying property in India?

Buyers deduct 1% TDS under Section 194-IA on property of fifty lakh rupees or more (via Form 26QB). Rent above a threshold uses Section 194-IB. For NRI sellers, Section 195 applies at higher rates, with a lower-deduction certificate available to reduce over-withholding.

Q: Can foreigners or NRIs invest in Indian real estate?

FDI in construction-development is allowed up to 100% automatic, subject to FEMA conditions on lock-in and exit. NRIs / OCIs can buy residential and commercial property (not agricultural land or farmhouses) and repatriate proceeds within limits, with FC-GPR reporting and pricing rules applying.

Q: What can a buyer do if a builder delays possession?

Under RERA, a buyer facing delay can complain to the state RERA authority for refund with interest, compensation, or possession with delay interest, with appeal to the RERA Appellate Tribunal. RERA is a faster, specialised forum than civil courts.

Real estate is governed by one of India's most demanding compliance ecosystems — the Real Estate (Regulation and Development) Act 2016 (RERA) for project and agent registration and escrow discipline, intricate GST rules with the 1% and 5% no-input-credit schemes, heavy stamp duty and registration charges, land-title and due-diligence risk, FEMA conditions on foreign investment in construction development, and capital-gains provisions such as Sections 54, 54F, and 54EC and TDS under Section 194-IA. A single defective title chain or a missed RERA filing can derail an entire project.

Our real estate and RERA advisory practice works with developers, landowners, investors, brokers, and buyers across the project lifecycle — RERA project and agent registration and quarterly compliance, Joint Development Agreement (JDA) and SPV / JV structuring, GST advisory on under-construction and completed property, stamp-duty optimisation, land and title due diligence, FEMA / FDI structuring for foreign capital, capital-gains and TDS planning on sale, and RERA dispute and recovery support. Whether you are launching a project, signing a development agreement, structuring an investment vehicle, or planning a profitable exit, we keep the transaction clean, compliant, and tax-efficient.

RERA 2016

Project Registration

JDA / SPV

Project Structuring

1% / 5%

GST Schemes

Sec 54 / 54F

Capital-Gains Relief

Laws & Frameworks We Work Under

RERA Act 2016

State RERA Rules

Joint Development (JDA)

GST 1% / 5% Scheme

Stamp & Registration Acts

Transfer of Property Act

Sec 194-IA TDS

Sec 45(5A) JDA Tax

Sec 54 / 54F / 54EC

FEMA Construction FDI

Benami & Title Laws

RERA Adjudication

Real Estate Engagements We Handle

RERA

RERA Registration & Compliance

Project and agent registration with the state RERA authority, plus ongoing escrow, quarterly updates, and disclosure compliance.

Project registration
Agent registration
70% escrow compliance
Quarterly project updates
QPR & disclosure filings
Extension & correction

Structuring

JDA / SPV / JV Structuring

Structuring development arrangements between landowners and developers, and creating special-purpose vehicles for projects and investors.

Joint Development Agreement
Area / revenue-share model
Project SPV formation
Investor / JV structuring
Development management deal
Power of attorney structuring

GST

GST on Real Estate

Applying the correct GST rate and credit position to residential, affordable, and commercial projects, and to JDA transactions.

1% affordable / 5% other
Input-credit position
JDA / TDR GST
Commercial-project GST
Time-of-supply opinions
Anti-profiteering review

Diligence

Land & Title Due Diligence

Verifying ownership, encumbrances, conversion, and approvals before acquisition or development to protect against title and statutory risk.

Title-search & chain review
Encumbrance certificate
Land-use / zoning check
Approvals & sanction review
Litigation & charge search
Due-diligence report

Tax

Capital-Gains & TDS Planning

Optimising tax on sale of property and on development agreements, and managing buyer-side withholding obligations.

Sec 45(5A) JDA timing
Sec 54 / 54F reinvestment
Sec 54EC bonds
Sec 194-IA / 194-IB TDS
Indexation & rate analysis
NRI sale (Sec 195)

FEMA

FDI & Foreign Investment

Structuring foreign and NRI investment into construction-development and real-estate businesses within FEMA conditions.

Construction-development FDI
FEMA lock-in conditions
NRI / OCI property rules
FC-GPR reporting
Repatriation planning
FPI / AIF real-estate route

Key Real Estate Concepts You Must Know

RERA

Project Registration

Most projects above a small area / unit threshold must register with the state RERA authority before any marketing or sale, with mandatory disclosures.

Pre-Sale Registration Mandatory Disclosure

70% Escrow

Separate Account

RERA requires 70% of buyer collections to be kept in a separate escrow account, withdrawn only for that project's construction and land cost.

Ring-Fenced Construction Use

JDA

Joint Development

A landowner contributes land and a developer constructs, sharing area or revenue — a tax and stamp-duty sensitive arrangement requiring careful drafting.

Area / Revenue Share Careful Drafting

Sec 45(5A)

JDA Tax Timing

For individuals / HUFs, capital gains on a JDA are taxed in the year the completion certificate is issued, not at the date of the agreement.

Completion Trigger Deferred Gain

GST

1% / 5% Scheme

Under-construction residential property is taxed at 1% (affordable) or 5% (other) without input tax credit; completed property with a CC attracts no GST.

No ITC CC = No GST

Sec 194-IA

TDS on Purchase

A buyer must deduct 1% TDS on purchase of immovable property where the consideration or stamp value is fifty lakh rupees or more.

1% Deduction Form 26QB

Sec 54 / 54F

Reinvestment Relief

Capital gains on residential property (Sec 54) or other assets (Sec 54F) can be exempt if reinvested in a residential house within prescribed timelines.

Reinvest Gain Timeline Bound

FEMA

Construction-Development FDI

Foreign investment in construction-development is allowed up to 100% under the automatic route, subject to conditions on exit, lock-in, and project type.

100% Automatic Conditions Apply

Our Real Estate & RERA Services

RERA Project Registration

End-to-end project registration with the state authority — documentation, declarations, architect / engineer certificates, and portal filing.

RERA Agent Registration

Registration of real-estate agents and brokers, renewal, and compliance with advertising and disclosure norms under RERA.

RERA Ongoing Compliance

Quarterly project updates (QPR), escrow-account compliance, disclosure updates, extensions, corrections, and project-completion filings.

JDA & Development Drafting

Drafting and structuring of Joint Development Agreements, area / revenue-share models, development-management deals, and powers of attorney.

SPV / JV Structuring

Project SPV formation, investor and joint-venture structuring, shareholders' agreements, and capital and exit arrangements.

Land & Title Due Diligence

Title-search and chain-of-title review, encumbrance verification, approval and litigation checks, and a comprehensive due-diligence report.

GST Advisory & Litigation

Rate and credit determination, JDA / TDR GST, commercial-project GST, time-of-supply opinions, and representation in audits and notices.

Stamp Duty & Registration

Stamp-duty assessment and optimisation, document drafting, registration support, and adjudication / refund of stamp duty.

Capital-Gains & TDS Planning

Section 45(5A) JDA timing, Sections 54 / 54F / 54EC reinvestment, Section 194-IA / 194-IB compliance, and NRI-sale withholding under Section 195.

FEMA & Foreign Investment

Construction-development FDI structuring, NRI / OCI property compliance, FC-GPR reporting, and repatriation planning.

RERA Disputes & Recovery

Representation before the RERA authority and Appellate Tribunal, refund / interest / possession claims, and complaint defence.

Accounting, Audit & Virtual CFO

Project accounting, percentage-of-completion revenue, statutory and tax audit, cost control, and developer MIS reporting.

When a Real Estate Business Needs an Advisor

Launching a New Project

RERA registration, escrow setup, GST positioning, and approval verification must all be in place before any marketing or booking begins.

Signing a JDA

Development agreements carry significant tax, stamp-duty, and structuring consequences — poor drafting can create early tax liability and disputes.

Acquiring Land

Title defects, encumbrances, and missing conversions are the biggest risk in any acquisition and must be cleared through due diligence first.

Raising Project Capital

Bringing in investors, a JV partner, or foreign capital requires the right SPV, shareholders' agreement, and FEMA-compliant structuring.

Selling a High-Value Asset

Sale of property triggers capital gains, TDS, and reinvestment-relief planning — and, for NRIs, withholding under Section 195.

RERA Notice or Complaint

A buyer complaint, penalty, or recovery proceeding before the RERA authority needs a prompt and well-documented response.

GST Rate Dispute

Choosing the right GST scheme and handling JDA / TDR and commercial-project GST often invites scrutiny that must be defended on facts.

NRI Property Transaction

NRI purchase, sale, or repatriation involves FEMA conditions, higher withholding, and lower-deduction-certificate planning.

Documents Needed for a Real Estate Engagement

Title & Approvals

Title deeds & chain of title
Encumbrance certificate
Land-use / zoning conversion
Building / layout sanction
Commencement & occupancy certs
Khata / mutation records
Approved plans & NOCs

Project & RERA

RERA registration & QPR
Allotment / sale agreements
Escrow-account statements
Architect / engineer certificates
Project cost & cash-flow
Joint Development Agreement
Brochures & advertisements

Financial & Tax

Audited financials (3 years)
GST registration & returns
Income-tax returns
Capital-gains computation
TDS (26QB / 26QC) records
Stamp-duty & registration receipts
FEMA / FC-GPR filings

Our Real Estate Engagement Process

Diagnostic & Diligence

Title and approval review, RERA-applicability check, and a structuring memo covering tax, stamp duty, and FEMA where relevant.

Structuring & Drafting

JDA / SPV / JV structuring, agreement drafting, GST positioning, and capital-gains and TDS planning.

Registration & Setup

RERA project / agent registration, escrow setup, GST registration, and document registration with stamp-duty optimisation.

Compliance & Filings

Quarterly RERA updates, GST and income-tax filings, TDS compliance, and FEMA reporting through the project.

Exit & Dispute Support

Sale and capital-gains execution, completion filings, and representation before RERA / tax authorities as needed.

Why Choose Us for Real Estate & RERA

✓

End-to-end RERA compliance

✓

JDA & SPV structuring

✓

Land & title due diligence

✓

GST & stamp-duty optimisation

✓

Capital-gains & TDS planning

✓

FEMA & NRI advisory

✓

RERA dispute representation

✓

Developer accounting & CFO

FAQs on Real Estate & RERA in India

When must a real-estate project be registered under RERA?

Under the RERA Act 2016, a promoter must register a project with the state RERA authority before advertising, marketing, booking, or selling any unit, unless the project is below the area / apartment threshold prescribed by the state (commonly 500 square metres or 8 apartments). Ongoing projects without a completion certificate also required registration. Real-estate agents must register separately. Selling an unregistered project attracts significant penalties under the Act.

What is the 70% escrow rule under RERA?

RERA requires the promoter to deposit 70% of the amounts collected from buyers for a project into a separate escrow account maintained for that project. Funds can be withdrawn only to cover land and construction cost, and withdrawals must be certified by an engineer, architect, and chartered accountant in proportion to project completion. This ring-fences buyer money and prevents diversion to other projects — a core protection that we help promoters implement and document.

How is GST charged on real estate in India?

Under-construction residential property is generally taxed at 1% (affordable housing) or 5% (other residential) without input tax credit, while completed property sold after the occupancy / completion certificate attracts no GST. Commercial under-construction property and works contracts are taxed at higher rates with credit. JDA and Transferable Development Rights have their own GST treatment and timing. The correct scheme depends on project type and stage, and we determine the position and defend it in scrutiny.

How are capital gains taxed on a Joint Development Agreement?

For an individual or HUF landowner, Section 45(5A) defers the capital-gains charge on a JDA to the year in which the completion certificate is issued, rather than the date of the agreement, with the stamp-duty value of the owner's share (plus any cash) treated as the sale consideration. This avoids tax falling due before any units are received. Outside Section 45(5A) (for example, for companies or where the owner transfers the share before completion), the gain may be taxed earlier — so structuring and timing matter.

What TDS applies when buying property in India?

A buyer must deduct 1% TDS under Section 194-IA on purchase of immovable property (other than agricultural land) where the consideration or stamp-duty value is fifty lakh rupees or more, depositing it via Form 26QB. For rent above a threshold, Section 194-IB applies. Where the seller is an NRI, TDS is instead governed by Section 195 at higher capital-gains rates, and the seller can apply for a lower-deduction certificate to avoid over-withholding. We compute and manage these obligations on both sides.

Can foreigners or NRIs invest in Indian real estate?

Foreign direct investment in construction-development projects is permitted up to 100% under the automatic route, subject to FEMA conditions on minimum project size (now largely eased), lock-in, and exit. NRIs and OCIs can freely buy residential and commercial property (but not agricultural land, plantation, or farmhouses) and repatriate sale proceeds within limits. Foreign nationals not of Indian origin face tighter restrictions. Reporting in Form FC-GPR and adherence to pricing and repatriation rules is essential.

What can a buyer do if a builder delays possession?

Under RERA, a buyer facing delayed possession can file a complaint with the state RERA authority seeking refund with interest, compensation, or possession with delay interest, depending on the relief chosen. Orders are appealable to the RERA Appellate Tribunal. RERA provides a faster, specialised forum than civil courts. We represent buyers in framing claims and developers in defending complaints, and help quantify interest and compensation accurately.

Clean Title. Compliant Project. Tax-Smart Exit.

Partner with our real-estate and RERA experts for project registration, JDA and SPV structuring, GST and stamp-duty optimisation, due diligence, and capital-gains planning for FY 2026–27.

Talk to a Real Estate Expert