S.Vix (ARTICLED CLERK) (60 Points)
20 May 2015MR.X AND MR.Y ARE BROTHERS HAS HOUSE PROPERTY AT ANNA NAGAR AND VELACHERY RESPECTIVELY BOTH WANTS TO SWAP THEIR HOUSE PROPERTIES WITHOUT ANY MONEY CONSIDERATION. WILL THIS ATTRACT CAPITAL GAIN. PLEASE ADVICE
In my opinion, as they are relatives, they can gift the houses to each other without any tax implication.
In case they do not wish to excecute the gift deed, the exchange transaction will be considered as a transfer. The considerations will be the fair market values of the houses. In my opinion they can take benefit of section 54 to reduce the capital gains tax.
CS Advocate Abhishek Goyal
(M Com FCS LLB M-AIMA )
(13597 Points)
Replied 30 May 2015
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