CAPITAL GAIN TREATEMENT IN CASE OF EXCHANGE OF PROPERTY

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Atul Agrawal (Querist)
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22 December 2021 Two properties A & B jointly situated, are registered with the names of the wives of two real brothers. they have exchange the respective properties with each other in Novembor-2020 by completing the registrar formalities and also stamp duty paid. the exchange value was Rs. 35 lakh and there was no consideration due to relation. the properties were originally purchased in 1996 from society in Rs. 54000 each and get approved with government authority in year 2004. there was Rs. 100000/- for approval cost by government.
What is the Tax treatment to both Females for A.Y. 2021-22.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 December 2021 If the stamp duty value of both the properties is same. Calculate COA as indexed FMV of 1st april,2001.
Add to it indexed COI as of 2004.
The capital gain so arrived is taxable in case of plots.
If residential properties, deduction u/s. 54 of the act, can be claimed.

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