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Section 56(2)(x)

15 May 2018

Does section 56(2)(x) is applicable for a charitable trust registered u/s 12AA, when the trust purchases a property for charitable purpose at less than stamp duty value?.

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 15 May 2018

Yes, it is applicable for a charitable trust registered u/s 12AA introduced in Finance act 2017, However, this newly inserted clause(x) in section 56 shall not apply to any sum of money or any property received:

1) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10.

2) from or by any trust or institution registered under section 12A or section 12AA.

3) by any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10.