Income from other sources exemption to trust society

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Amritansh Chandra (Querist)

24 November 2018 If a charitable trust/society purchases a land from a company (Pvt Ltd) at a price less than the circle rate, then :
Will the difference amount (price at circle rate – actual consideration paid) be added to the “Income from other sources” of the society / trust ? Or is there any exemption to societies/ trusts ?

Under which section Of Income tax Act is such exemption?

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 November 2018 taxable under 56(2)(x). believe it was answered earlier today too.

Message likes : 1 times

Amritansh Chandra

Amritansh Chandra (Querist)

24 November 2018 But sir, there are exemptions given in sec 56 (2) (x) under point 7, which I wanted to clarify.
It says: Provided that this clause shall not apply to any sum of money or any property received from or by any trust or institution registered under section 12 A.
What I could infer is that societies and trusts are exempted. Am I correct ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 November 2018 thats bad. my mistake. I apologise to you made. you are correct if the said organisation has 12A registration.

Amritansh Chandra

Amritansh Chandra (Querist)

24 November 2018 Dear sir, the exception clause is written below paragraph no (c) of 56 (2)(x)... please see through the act..!!

Does this exception clause is for paragraph (c) only or for complete 56 (2) (x) ?

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