Income tax for exchange of land

This query is : Resolved

28-Dishansh Mishra (Querist)
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25 June 2023 Let me explain the situation through an example. Two people ( A and B) want to exchange their land(same state, different cities, non agricultural) through exchange deed without any monetary consideration. Both of them have held their land for more than 10 years.

Before exchange of land :

Land of A :
the indexed cost of acquisition is 1 lac
the stamp duty value of land is 8 lac

land of B:
the indexed cost of acquisition is 2 lac
the stamp duty value of land is 10 lac

After exchage, what will be the income tax implication for both A and B ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 June 2023 For both the cost of acquisition will be indexed and the same will be reduced from FMV of land i.e Rs. 10 lakhs in this barter exchange to get LTCG for each.