Dear Freinds,
Need assistance on this one,
-- One person has transferred his land to another for a consideration other than cash. The Consideration being another land given by the purchaser. The transaction was completed and both the parties have paid Long Term Capital Gain tax based on the market value of the Land received by them. But later due to various reasons the transaction entered was reversed by another agreement and the original ownership was restored. The restoration was done within a few months after the transfer. Now the original owners want to sell their lands to a third party for cash consideration and 3 years has not elapsed from restoration. Kindly let me know the tax implication:-
1) What should be the period of holding in the hand of original owners.. [whether from restoration or from initial purchase.?]
2) Can the Original owners claim refund of the LTCG paid since the transaction was reversed.?
CAclubindia
