Gift tax


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Querist : Anonymous

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Querist : Anonymous (Querist)
09 September 2014 Mr. A and Mr. B are brothers. Both have a Property. Both exchange the properties with each other. The difference in valuation of above properties exchanged with each other comes to Rs. 1 Crore.(Mr. A's property was of rs. 25,00,000 and Mr. B's Property is of Rs. 1,25,00,000 )
What can be the tax implication and how can it be saved under various options?

09 September 2014 if both gifts to each other then there is no tax payable as per section 56(2)

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 September 2014 Thank you. so there will be no attraction of capital gain taxation? plz explain.

09 September 2014 the ans is no as there is no transfer as per sec 2(47)

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 September 2014 Thank you for your kind help.

09 September 2014 you are welcome friend


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