Capital Gains on inherited property after re-development?



Our property is 50 years old & are developing residential scheme on our own (finance through bank – mortage loan against land). Out of say 4 units we are planning to sell 2 units & balance 2 units wiil be kept for self occupancy. In this case are we supposed to pay any capital gains tax? Experts Please respond.

Capital Gains on inherited property after re-development?
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2 Replies to “Capital Gains on inherited property after re-development?”

  1. land value+ cost of improvement= total cost
    total cost/ area in sft

    sale value for 2 unit- cost value= capital gain
    pay tax on that.

    Tulsi


  2. you can show it as your personal transaction & then pay capital gain tax one it or you can start a new business & treat as your business income. Showing it as capital gain would reduce your tax liability.





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