20 March 2010
the trustee has transferred his building to trust in 2007-08. that why showing the loss. in the year 2008-09 again the property is transferred back to the same trustee. what will be tax concequences???
21 March 2010
I understand that immovable property of the trust cannot be disposed off without the permission of the charity commissioner. This is the law in gujarat and maharashtra. Assuming that the transaction is done in any other state, then capital gains tax would be applicable to the trustee. If the trust is exempt from IT, then on the sale of building to trustee, it will get exemption.
CAclubindia
