Exchange one Asset with Another

My father purchased some shares of a company in 1997 and gifted them to me and my wife jointly in September 2001. Since we are in the process of constructing a house, we sold these shares in August 2002 for utilisation of sale proceeds in the construction. Are we liable for any gift tax or capital gain tax on sale of the shares? Rakesh Agarwal, Mumbai

This article was originally published on January 23, 2003.