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DOUBT ON CAPITAL GAINS_DONATION

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Priyanka Ghose

2 Points Posted on 31 December 2024

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)

Quick Summary

An individual based in the USA for over 20 years owns a Chennai property and is considering donating it to a registered charitable trust or selling it to a friend. The discussion explores the tax implications of both scenarios. Donating the property directly to the trust may avoid capital gains tax liability, whereas selling the property would incur a long-term capital gains tax of 12.5%.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212529 Points Posted on 31 December 2024

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