mutual Transfer of capital asset- will it attract C.G.TAX

There is no capital gain tax in the case of mutual exchange of capital asset. But if the capital asset which is received by the transferee as a consideration is sold with in a period of 3 years. Then the capital gain tax is attracted

I Agree with Chinthan,

exchange is also a form of transfer...

The term "transfer" is also interpreted according to the provisions of TP Act... Some court decisions are there that the definition of transfer is only inclusive, and the general meaning is to be understood relying on the TP Act.

"Sale" is not the only form of transfer... :)

yes, CG will be attracted.

Transfer will include "Extinguishment of Right in the asset."

During mutual cross transfer, there is essentially "extinguishment of Right."

Hence, such Mutual transfer of Capital asset will attract CG.

Yes. Capital gain will be attracted.

As per definition of Transfer, Transfer includes "extinguishment of right in an asset."

During the mutual transfer, both the parties lose their right in the asset, and of course gain the right in the other person's asset.

Hence, due to loss(extinguishment) of right, CG will be attracted.