Capital Gain, Income Tax

[Ethirajan Parthasarathy]

Property “A” and “B” are jointly owned by two sisters.

It is mutually agreed that sister 1 will release her right in property “A” in favor of sister 2 and vice versa.

Will this transaction amount to “exchange” resulting in Capital Gain or whether it can be treated as family arrangement which is out of preview of definition of “transfer” and hence no Capital Gain is attracted.

Posts / Replies

[CASusheel Gupta]

Since both are co-owner, it can be treated as family arrangement

CA Susheel Gupta

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