Dear all,
We are getting an old property reconstructed. It has 4 partners. everyone has there separate portions, registered, demarcated and mutated.
After reconstruction, the size of property will increase for everyone . for e.g. if my portion right now is only ground floor, it will increase by one more floor above.
We all shall be investing money in the construction ofcourse.
I wanted to know if this capital increase in the value my property , be treated as income ? do i need to pay any tax in lieu of this ? or it will be considered only at the time of sale of property and not now ?
CAclubindia
