02 October 2021
I one of the trustees want to lease out a trust property measuring 5000 square foots for 99 years for one time premium of Rs one crores. The Circle rate of the said property is around Rs 4 crores. If i do so, kindly answer my following questions.
1) What be our status in respect of capital Gain ? 2) if any capital gain liability is raised by ITO , upon whom it will be raised Trust or Trustees.
04 October 2021
1. It can be argued that the amount received is one time rent amount and not capital receipt. 2. Against the trust, as the property belongs to it. BTW... how can a trustee act upon independently without having powers given on behalf of trust?
CAclubindia
