Closing of Trust
This query is : Resolved
Quick Summary
Virender Malla
(Querist)
29 May 2021
I am one of the trustee of a private unregistered trust, which was created by my father and has two trustees at present. Due to personal issues we are unable to carry out the functioning of the trust and would like to close it. The trust has only one account and we propose to transfer the entire balance in the savings account of the trust to another trust and close the trust account.
Can we do it and are we supposed to advise or report to any authority about such closure. The trust has its own PAN No. & since we are regularly filing the trust IT Returns are we required to report the closure to IT authorities and also surrender the Pan Card.
Please advise
Thanks
Virender Malla
Can we do it and are we supposed to advise or report to any authority about such closure. The trust has its own PAN No. & since we are regularly filing the trust IT Returns are we required to report the closure to IT authorities and also surrender the Pan Card.
Please advise
Thanks
Virender Malla
CA R SEETHARAMAN
(Expert)
29 May 2021
Who is the beneficiary of the new trust. Is there any change in beneficiary.
Virender Malla
(Querist)
30 May 2021
The beneficiary is KMECT which is a registered trust. The funds will be transferred in small amounts as donation to KMECT
CA R SEETHARAMAN
(Expert)
30 May 2021
Not replied for change in beneficiary or not.
In case of change in beneficiary tax applicable on transfer in excess of 50,000.
In case of change in beneficiary tax applicable on transfer in excess of 50,000.
Virender Malla
(Querist)
31 May 2021
I could not understand what you mean by change in beneficiary.
I believe beneficiary is the person who gets donation from the trust. Our trust is donating money to KMECT who becomes the beneficiary. So how does change in beneficiary come in here.
I believe beneficiary is the person who gets donation from the trust. Our trust is donating money to KMECT who becomes the beneficiary. So how does change in beneficiary come in here.
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