Let me explain the situation through an example. Two people ( A and B) want to exchange their land(same state, different cities, non agricultural) through exchange deed without any monetary consideration. Both of them have held their land for more than 10 years.
Before exchange of land :
Land of A :
the indexed cost of acquisition is 1 lac
the stamp duty value of land is 8 lac
land of B:
the indexed cost of acquisition is 2 lac
the stamp duty value of land is 10 lac
After exchage, what will be the income tax implication for both A and B ?