Capital gain transfer

Tansfer to attract capital gains mean Sale, Exchange, Relinquishment, Extinguishment and redemption of zero coupon bonds.

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

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

AGREED.

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,

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