According to some experts, if the property is converted into flats which its present owners intend to occupy for personal use and occupation in that case they cannot be subjected to capital gain tax.
We enjoy the appreciation on the property which continue to happen for all properties without going through the hardship of negotiating, selling and purchasing another property.
In the event we have any requirement of cash the same can be met by the security deposits paid by the developer at the time of signing and execution of the development contract without it being subjected to any kind of Capital or Income tax.
An alternate accommodation during the development and construction over our existing property is usually provided by the developer for which the owners do not have to pay any tax. In the event the sale of property if the sale proceeds are used for the alternate accommodation no such tax exemption is available.
When we own and occupy the flats constructed on our own property we are obviously not subjected to any brokerage, legal charges, stamp duty or registration fees etc.