Gift to trust

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Gifting property to a trust registered under Section 12AA of the Income Tax Act generally incurs no tax liability for either the individual donor or the trust itself. However, if the trust is not registered under 12AA, the trust will be liable for tax. Section 56(2)(x) of the Income Tax Act is relevant in determining taxability.

virat

virat (Querist)

27 September 2020 If Any Individual Gifts Property to Trust registred under 12AA as a religious Trust then what will be tax liability in both individual and The Trust?
and what will be the consequences, if trust not registered under 12AA?
Please do suggest in tax planning manner.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 September 2020 No tax liability for individual and trust in case of Trust registred under 12AA.
If trust not registered under 12AA, trust is liable for tax.

virat

virat (Querist)

29 September 2020 Thank You.
Will you plz quote Relevant section for Individual and trust for no taxability

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 September 2020 Section 56 (2)(x) of income tax.

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