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Exchange of propertys capital gains tax applicable

Kollipara Sundaraiah (B.com) (2963 Points)

12 October 2021

two it persons (brothers)
1.1st person house property exchange to 2nd person
2.2nd person vacant site exchange to 1st person
question:
above transactions two assess property exchange capital gains tax applicable in it act.

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4 Replies

Kev Men (788 Points)
Replied 12 October 2021

As per Section 47(iii), capital gains tax will not be applicable in both the above inter-related cases, in my humble opinion.

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CA Raj Doshi (Practising CA) (8908 Points)
Replied 13 October 2021

Dear Sir, if you structure it as an exchange, then it is taxable as capital gains. However, if you plan the transaction as a gift, then not taxable. But there are intricacies in your case and requiring solid structuring.