Can a trust receive land as a gift.. What will be tax treatment if someone gift land to a trust in the hands of that person as well for trust. What if trust generate income from such land.
Ankita Chachan (practitioner) (548 Points)
07 August 2018Can a trust receive land as a gift.. What will be tax treatment if someone gift land to a trust in the hands of that person as well for trust. What if trust generate income from such land.
Vaishnavi Ganesh
(Chartered Accountant)
(861 Points)
Replied 10 August 2018
Yes. Trust can receive land as gift, supported by the proper Gift Deed documenting the same.
Make sure that the gift is not in conflict with the objectives of the Trust.
As per Section 62, as the gift made to a trust is irrevocable the income arising from that property shall not be included in the income of the transferror. The income becomes the income of the Trust (Transferee)
Ankita Chachan
(practitioner)
(548 Points)
Replied 10 August 2018
it will be taxable in the hands of trust. Income will not be taxable provided the trust is registered and the income is spent on its object registered.
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