Urgent query

Mr. X gifted his property to Mr. Y in 1996. Mr. Y now intends to sell the same and gift half of the sale proceeds to Mr. X. Would it be beneficial if Mr.Y now gifts half the property back to MR. X and then sell the same so that both of them can index their respective shares of cost of acquisition? In this case though gift is not a transfer as per Capital gains, will tax on gift of half of the property be lower than the tax on cash gift if Mr. Y directly sells the property and shares the proceeds with Mr. X. Mr. X and Mr. Y are not fictitious and this is a real query. Kindly clarify.
Replies (2)

Hi,

In both of the case your tax liability will be the same.

Also the parties should be related.

for any further query PM or mail us.

AJH & CO.

info @ ajh

Thanks a lot.

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