Capital gain on swapping of house
This query is : Resolved
20 May 2015
MR.X AND MR.Y ARE BROTHERS MR.X OWNS HOUSE PROPERTY IN PLACE 1 AND MR.Y OWNS HOUSE PROPERTY AT PLACE 2 THE FAIR MARKET VALUE OF THE HOUSE PROPERTIES ARE DIFFERENT NOW MR.X AND MR.Y WANTS TO SWAP THEIR HOUSE PROPERTIES WITHOUT ANY MONEY CONSIDERATIONS I.E. MR.X WILL REGISTER THE HOUSE PROPERTY OWNED BY HIM TO MR.Y AND VICE VERSA WILL THIS TRANSFER TAXED UNDER THE HEAD OF CAPITAL GAIN KINDLY ADVICE
21 May 2015
As per section 2(47) of income tax act which contains definition of transfer, exchange is also a mode of transfer hence liable for capital gain tax. Capital gain tax will be chargeable in the hands of that person who gets property with higher fair market value.
21 May 2015
For this purpose sale consideration will be fair market value of the property which is received in exchange. For example if capital gains accrues to Mr X than sale consideration for him will be fair market value of the property which is gets in exchange from Mr Y.
21 May 2015
SIR, AS THE TRANSACTION WAS BETWEEN BROTHERS WITHOUT ANY CONSIDERATION CAN IT BE CONSIDERED AS GIFT AND AVOID TAX PLEASE ADVICE
22 May 2015
Mutual gifts must be avoided as far as possible. However a reasonable time gap may be kept between two gifts so as to avoid any suspicion of mutual transfer. But then both brothers will have to register the gift deed and accordingly incur registry expenses.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Refund of AY 22-23
- HSN Details in IFF/GSTR-1 & in GSTR 9
- TDR receipts for agreement holder
- Inventory of finished goods
- Confusion around Form 26QB fields
- Company Incorporation - CA and directors signing from different states
- Sale of property furniture sale
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Vivad se vishwas scheme 2024 new
- RCM on Advocate services by unregistered perosn
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
Trending Online Classes
CAclubindia
