Capital gain on swapping of house
This query is : Resolved
20 May 2015
MR.X AND MR.Y ARE BROTHERS MR.X OWNS HOUSE PROPERTY IN PLACE 1 AND MR.Y OWNS HOUSE PROPERTY AT PLACE 2 THE FAIR MARKET VALUE OF THE HOUSE PROPERTIES ARE DIFFERENT NOW MR.X AND MR.Y WANTS TO SWAP THEIR HOUSE PROPERTIES WITHOUT ANY MONEY CONSIDERATIONS I.E. MR.X WILL REGISTER THE HOUSE PROPERTY OWNED BY HIM TO MR.Y AND VICE VERSA WILL THIS TRANSFER TAXED UNDER THE HEAD OF CAPITAL GAIN KINDLY ADVICE
21 May 2015
As per section 2(47) of income tax act which contains definition of transfer, exchange is also a mode of transfer hence liable for capital gain tax. Capital gain tax will be chargeable in the hands of that person who gets property with higher fair market value.
21 May 2015
For this purpose sale consideration will be fair market value of the property which is received in exchange. For example if capital gains accrues to Mr X than sale consideration for him will be fair market value of the property which is gets in exchange from Mr Y.
21 May 2015
SIR, AS THE TRANSACTION WAS BETWEEN BROTHERS WITHOUT ANY CONSIDERATION CAN IT BE CONSIDERED AS GIFT AND AVOID TAX PLEASE ADVICE
22 May 2015
Mutual gifts must be avoided as far as possible. However a reasonable time gap may be kept between two gifts so as to avoid any suspicion of mutual transfer. But then both brothers will have to register the gift deed and accordingly incur registry expenses.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- EXPORT COMMERCIAL INVOICE HSN CODE
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Cash balance limit and property purchases limit
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
