Q. Taxation of Inherited Property proceeds donated to Charities

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Question added Apr 4 Miscellaneous By KHUSBOO JAIN, CS in Practice, Kolkata
An elderly assessee has inherited a property from his deceased father (it is still in his father's name - there are no claims to it and he is the sole rightful heir) and he wants to sell the property to a 3rd party and donate the entire proceeds from such sale to 3 different charities registered under the IT Act.
A. Will there be any capital gains for him even though he doesn't keep any of the proceeds and is not the beneficiary of the sale receipts?

B. If he is to be taxed on the above , then how can he structure the sale in a way which will result in no tax as he legitimately wishes to give all the money to Registered Charities and keep none for himself?

1 Answer

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answered Apr 10 By CA PRAMOD JAIN, CA, CS, CMA, LL.B, Delhi
It would be taxable in its hand. The other way could be that he gifts or donates this property directly to the charities.

Concept by CA Pramod Jain

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