Section 22 (U) in relation to Section 27, NIRC. Which statement is correct? A non-stock, non-profit charitable association that sells its idle…

The question

Section 22 (U) in relation to Section 27, NIRC. Which statement is correct? A non-stock, non-profit charitable association that sells its idle agricultural property is: (2012 Bar Question)

1. A.Not required to file an income tax return nor pay income tax on the transaction to the BIR, provided the sales proceeds are invested in another real estate during the year;
2. B.Required to pay the 6% capital gains tax on the gross selling price of fair market value, whichever is higher;
3. C.Mandated to pay the 30% regular corporate income tax on the gain from sale;
4. D.Required to withhold the applicable expanded withholding tax rate on the transaction and remit the same to the BIR.

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