DOUBT ON CAPITAL GAINS_DONATION

Tax queries 281 views 3 replies

I have an aunt who has settled in the USA for more than 20 years. She has a residential property in Chennai, which she wants to donate to a registered charitable trust. However, her friend wants to buy the property from her.

Which will be more beneficial for her? Donating the property directly to the trust? or selling the property & donating the proceeds to the trust? what are the tax implications in both the cases?

Replies (3)
  1. If any trust accepts the donation of the property it may be more benficial to her as there will not be any tax liability.
  2. In case she sell it to her friend, the long term tax liability at 12.5% will arise.

Thanks. Can you let me know which section number to refer for avoidance of tax liability 

For giving donation there is no tax liability to the donor. No code required for exemption as it is not an income for donor.


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