GIFT OF LAND BY TRUST
This query is : Resolved
26 February 2026
A private Trust intends to Gift some land to a society for running a school.
My questions are:-
(1) whether this transaction is treated as Capital Gain in the hands of Trust u/s 50C ?
(2) And what about Society ? Will they have to pay tax ? As they will receive Immovable property without any consideration [Section 56(2) ]
My questions are:-
(1) whether this transaction is treated as Capital Gain in the hands of Trust u/s 50C ?
(2) And what about Society ? Will they have to pay tax ? As they will receive Immovable property without any consideration [Section 56(2) ]
26 February 2026
If the Society is Registered (u/s 12AB or 10(23C)): The gift of land will be tax-exempt in the hands of the Society. It will be treated as a "voluntary contribution" or "corpus donation" and should be used for the school's objectives.
If the Society is NOT Registered: The Society will be liable to pay tax on the entire Stamp Duty Value of the land at the applicable tax rates, as it would be treated as "Income from Other Sources."
If the Society is NOT Registered: The Society will be liable to pay tax on the entire Stamp Duty Value of the land at the applicable tax rates, as it would be treated as "Income from Other Sources."
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