Capital gains

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RAMAN ARORA (Querist)
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20 July 2012 Exchange of property without any additional payment,stamp duty on higher value has been paid will it be liable for capital gain tax?

B Parasuram

B Parasuram (Expert)
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20 July 2012 AS per definition of IT Act, Capital gains are taxed based on transfer of capital assets.
As per definition of 2 (47) , transfer includes Sale, Exchange,Relinquishment of asset.

Hence in your above case, this exchange of asset without any monetary consideration received would also be treated as transfer and hence liable to Capital gains tax.

Hope this clarifies your query.