Capital Gains & Income Tax Liability

Sanjay (Service) (81 Points)

26 December 2023  

Senior Citizen (80+ age) wants to sell one of his residential properties and divide the proceeds between his children.

I understand the IT rule is that Capital Gains has to be paid by Senior Citizen after sale and balance amount after deduction of Capital Gains can be gifted to his children. 

1. Now, is there any Tax liability on Children once the amount is received in their Bank Account after deduction of Capital Gains by Senior Citizen. Do they need to show proof of funds etc. to Bank or for IT Assessment, if any. What proof, if required could that be.

2. Is there any way to save Capital Gains by Children. Senior Citizen does not want to re-invest the proceeds.