No capital gains tax on share transfer under family arrangement

Transfer of shares or other interests pursuant to a family arrangement is not a transfer and hence not liable to capital gains tax. Karnataka High Court CIT vs. R. Nagaraja Rao Case Number: ITA 3048/2005 Date of Judgment: 19-Mar-2012 The assessee, Shri R. Nagaraja Rao, was party to a family arrangement. Each of the parties to the arrangement held personal properties as well as family properties and shares in different business concerns. A dispute arose between the parties, which was re­ferred to arbitration. As per the terms of the settlement suggested by the arbitra­tor, the assessee ha...