Charitable trust

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shaikh irshad (Querist)
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16 May 2016 There is a charitable cum religious Society registered under societies Act 1860, (say A). It has paid advance for purchase of land for a charitable project. Now the project cost is going out of budget to Society (A). There is another Charitable cum religious trust (B) approached to Society (A) to take over the project. Trust (B) will buy the same land for which Society (A) has paid advance. Both the trusts and the Society are registered under 12A. Now, Society (A), is willing to forego the advance money as donation to trust (B).
What will be the implications from Tax point of view and the societies Act 1860.

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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21 May 2016 this is not a simple case. considering the recent budget amendments, this could have wide ramifications in terms of exit tax on charitable trust if the conditions prescribed ate not satisfied.