I have a Land of 3800 Sq Ft on 40 Ft at one residential colony at Rajasthan, we have an offer to exchange it with a 4000 Sq. Ft on 60 Ft. Road in the same Khasram which is actually a adjoining plot, the other party will bear the cost of the registry in the above case. My question is would there be any Income tax liablity arising on the transation.
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Land exchange
Replies (3)
Yes, the current value of the plot as mentioned in the exchange deed will be taken as sell value, for arriving at capital gains.
With proper tax planing there will no Tax liabaility(Since there is No flow of cash how Tax will Be Paid). Consult with CHartared Accounted he will help you to Plan you Tax flow...i hope he can make Zero Tax liability...
As per my view , there is a capital gain since definition of tranfer include exchange. However examtion under chapter of capital gain may be claim subject to certain condition.
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