Capital Gain on – Realignment of interest in properties on family arrangement – Taxability

Family arrangement is not regarded as transfer. For income tax purposes, a bona fide arrangement is not regarded as a transfer even when some assets change hands in consequence of such family arrangement. Where members are interested in firms and companies, consequently shuffling of interest is also a necessary incident of such family arrangement.

Moreover, where the family members decided to settle a possible dispute by a family arrangement involving an exchange of shares as between the family members, such exchange would not attract capital gains tax. As firms and companies are not members, shuffling of interest therein falls outside the scope of family arrangement. Such shuffling of interest in firms and companies in consequence of a family arrangement between members of the family, should not attract liability. is here to solve all your tax worries, be it relating to Tax Returns, Tax Support or Tax Planning. Just contact us; we are here to relieve you from all your tax worries. provides most hassle free tax return filing/ online return filing experience. Once you have collected, your salary certificate and other documents, we request you to please log in to or you can also directly mail at to submit the details. Upon receiving the documents, we would contact you to file your return of income.

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