Capital Gain - Exchange of Land

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Student
28 Points Posted on 22 April 2021
What will be the Sale consideration in case of Exchange of Land for Capital gain calculation.

Will it be Fair Market value or Reckoner value
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On 22 April 2021 at 15:47 Report
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When exchanging land, the sale consideration for capital gains tax purposes is typically based on the Fair Market Value of the land you are disposing of. Any cash received in addition to the land exchange is also subject to capital gains tax. The Fair Market Value is the key figure used to calculate your taxable gain.

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My grammar is 💯 good I
7306 Points Posted on 22 April 2021

It’s always fair market value, and the cash in hand you get is subject to capital gains taxes I guess. If your land is revalued as 100000 and exchanged it with 50,000 worth land and received cash 60,000₹, you will pay taxes on 10,000₹

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On 22 April 2021 at 17:18
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Chartered Accountant
24588 Points Posted on 22 April 2021
Fair Market Value will be considered as Sale Consideration
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On 22 April 2021 at 18:42

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