10 March 2016
Sir,
If the bye-laws of a trust permits that the trust can receive an immovable property from anyone without any consideration for the welfare of the society then what would be the legal compliance under income tax law for the trust point of view for the execution of such transaction?
11 March 2016
Gift of immovable property by a donor to a trust is not treated as a transfer u/s 47. Hence, there is no tax liability in the hands of donor. As per section 2(iia) voluntary contributions received by a trust is treated as income. Chargeability or non-chargeability of such income to tax may be checked with your tax consultant as it depends on nature of the trust and its registrations with IT Authorities etc.
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