Corpus received by an unregistered trust .

This query is : Resolved

Himanshi (Querist)
Follow

23 October 2019 Case law : ABC company has an amount of 2 crs in the name of mutual funds in its balance sheet . the company transferred this amount by cheque to xyz trust which is unregistered as a corpus donation .
Query is : 1. whether corpus donation of the trust be exempt or taxable in its hands. and if yes which head ?
2. reasons for the same .
3. Trust shall file its return in itr form no . ?
Please reply asap .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

24 October 2019 1 and 2 Finance Act 2017 introduced clause (x) in section 56(2). With the insertion of this section the money or the property received by any person for inadequate consideration or without consideration in excess of Rs. 50,000 shall be liable to income-tax under the head “Income from other sources” in the hands of the recipient.
3 ITR 5.

Himanshi

Himanshi (Querist)
Follow

25 October 2019 Sir thank you for replying .. here are some more facts in context of same .
1. Its a private trust
2.donation has been made as corpus for construction of building for trust members
3.most of the company directors are also the members of the trust
4. Because they don't want to disclose all their money transfer activities to the govt and Dept.
5.pan as private trust.
Now what do u suggest is the right way and how the treatment is to be done

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

25 October 2019 Transfer it as corpus donation and pay taxes.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

DSK TMC

Anju Susan

CA K GIRIDHAR

Sapan Kumar Nayak

Credible HRM

Subscribe Now

Corpus received by an unregistered trust .

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA