How teart donation received in kind in case of trust

This query is : Resolved

shilpa m (Querist)
Follow

26 September 2025 In case of trust how to treat Donation received in kind in 10BB and in ITR From which is not reported in From 10BD. Wheather it should be considered as coupus or other than corpus donation.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 September 2025 Donations received in kind by a trust, which are not reported in Form 10BD, need careful consideration in Form 10BB and in the Income Tax Return (ITR). Such donations, if not reported due to being in kind or due to lack of donor identification, should generally be classified as "other than corpus" donations unless there is a specific direction from the donor stating it should form part of the corpus of the trust.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 September 2025 Donations received in kind (e.g., materials, equipment) must be reported in Form 10BB as part of voluntary contributions, even if not reported in Form 10BD, provided there is relevant disclosure about donor identification issues or the nature of the donation.

In the ITR, these donations are treated as income unless they have a specific direction making them corpus donations.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 September 2025 Only donations with clear and explicit direction from the donor to be held as corpus are considered corpus donations.

All other donations, including in-kind gifts with no such direction, are considered "other than corpus" and must be treated as income and reported accordingly in Form 10BB and ITR.

In-kind donations do not qualify for 80G benefit and are not required to be reported in Form 10BD, but must be disclosed in audit forms and the ITR as part of the voluntary contributions.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 September 2025 If in-kind donations are not reported in Form 10BD, mention these clearly in the audit annexures (Form 10BB) with appropriate notes regarding their nature.

Classification depends on donor direction: Without specific instruction for corpus treatment, treat them as non-corpus donations in all filings.

In short, unless in-kind donations are accompanied by a specific instruction to treat as corpus (which is rare for goods), they should be reported as other than corpus donations in both Form 10BB and the ITR, with appropriate disclosures about their non-inclusion in Form 10BD due to nature or lack of donor identification.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 September 2025 Good luck..

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