capital gain tax

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suresh b.vaishnav (Querist)
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19 July 2011 i am holding tanancy property since 1996.
in 2008 same been surendered to builder and in lieu of such transfer I havebeen alottted a ownership shop.in 2009 such property gifted to my sister in law wit proper gift deed excuted and duly stamped.

1] whether any capital gain will be attracted on allotment of such .
2) whether any gift tax will be attrected.
ples as advise with reasons
thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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19 July 2011 Surrender of tenancy right attracts capital gains at the time of transfer of it.

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The Sales Consideration , thus received by you is in kind. Market value of the shop may be deemed as your sales consideration.

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In the second case the shop is gifted to your relative (Section 56- relative)
it will not be treated a transfer. No capital gains will arise.

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