public charitable trust

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karunakumar (Querist)
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29 November 2009
X a public charitable trust,registered under The Indian Trusts Act, enjoying benefits of Section 80G of The Income Tax Act.

The trust runs a school, gaushala for the upliftment of society along with spreading its religious practices.

The trust is having number of branches situated at different cities of India.It collects fees from students to the tune of Rs 1,00,000/- per annum.

The trust wants to purchase land at various places for establishing new branches and expansion of its activities.

The question lies at what value the land should be brought into books.Either at stamp duty value( Rs 25000)or the price which it has paid for the land(Rs 25,00,000)

If value shown at Rs 25,00,000/- what sources shall it show to avoid deviations from provisions of Income Tax.

Pankaj K Gupta

Pankaj K Gupta (Expert)
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29 November 2009 Land shall be accounted for at the price paid, not for stamp duty purposes. The source of the land may be donations, loans etc.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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29 November 2009 You have to Entry Rs.25,00,000/- in your books of A/c. and your sources of fund would be your copus fund it canbe Created by Donations and Object of Utilization is Upliftments of the Organisation. Just you need some good persons & Well known Persons who can give you good amount of donation for your corpus fund in Sec.80G and take benefit of it and additional to you also know how to collect better donation/corpus.you can also use your Project grant as per proposal and sanction by your Funding Agency.

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