Gifting money to Parent to instead of paying capital gains tax?



I recently sold my property and liable to pay capital gain tax on the profit.

Can i gift same profit money to my parents (who have no income at all) , so that i don’t have to pay CG tax ?

Thanks in advance for your help

Gifting money to Parent to instead of paying capital gains tax?
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5 Replies to “Gifting money to Parent to instead of paying capital gains tax?”


  1. No, doesn’t work that way. Making a gift isn’t a deduction for you. You’d pay the tax, and can then do whatever you want to with the remaining money including giving it away.



  2. Americans are answering but I assume you are from India.

    Exemptions from CGs are possible only u/s 54, 54B, 54D, 54EC, 54F, 54G &54GA.

    Gifting CGs to parents does not figure in any of the exemptions!!!!!!!!

    Sorry

    HMT


  3. You may consider the following option, which is the same effect as you want but indirecly.
    1- Make investment in any bonds as prescribed in section 54EC of the Income Tax Act 1961.
    2- Transfer the interest income from these bonds to your parents.
    You and your parent both will be benifited.





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