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The tutorial explains a joint development agreement, a property development transaction. In this example, an old property in a prime location is targeted by a builder who offers the owner ₹25 lakhs in cash and two new flats from the upcoming construction. The owner agrees, the deal is finalized, and the builder begins construction. Upon completion, the owner receives two flats while the builder retains two and sells four to recoup costs. Regarding taxation, capital gains are calculated by deducting the acquisition cost from the total value received in the transaction.