In case of a family settlement (not HUF) one brother exchange his land with a house of another brother. Question is whether it wil be a transfer under capital gain?
Harish Arora (C A ) (65 Points)
19 November 2011In case of a family settlement (not HUF) one brother exchange his land with a house of another brother. Question is whether it wil be a transfer under capital gain?
CA Bada Sanjay Kumar Reddy
(CA)
(69 Points)
Replied 19 November 2011
Tansfer to attract capital gains mean Sale, Exchange, Relinquishment, Extinguishment and redemption of zero coupon bonds.
Z
( )
(2960 Points)
Replied 19 November 2011
Transfer includes exchange as per sec 2(47)
explanation of exchange " An exchange involves the transfer of property by one person to another and reciprocally the transfer of property by the other to the first person. There must be a mutual transfer of ownership of one thing for the ownership of another - CIT v. Rasiklal Maneklal (HUF) [1989] 177 ITR 198/43 Taxman 259 (SC)."
Cap Gain will arise if theres been any capital profit , Fair Market value may be considered as consideration
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 19 November 2011
Originally posted by : Z | ||
Transfer includes exchange as per sec 2(47) explanation of exchange " An exchange involves the transfer of property by one person to another and reciprocally the transfer of property by the other to the first person. There must be a mutual transfer of ownership of one thing for the ownership of another - CIT v. Rasiklal Maneklal (HUF) [1989] 177 ITR 198/43 Taxman 259 (SC)." Cap Gain will arise if theres been any capital profit , Fair Market value may be considered as consideration |
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AGREED.
RAMDAS
(PROPRITER)
(33 Points)
Replied 19 March 2012
Dear all,
What will be the cost of acquisition and tax implication? If one of brother sold the exchanged property subsequently within 6 months.
Thanks,
bcshettyco
(Chartered Accountant In Practice)
(65 Points)
Replied 20 March 2012
You have to consider the market value of the tranferred asset for arrving at the considertaion on which the stamp duty is paid and arrive at capital gain