Tax on donation

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Ankita Chachan (Querist)
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10 August 2018 A trust receive land as a gift or donation. what will be its tax treatment in the hand of donor and donee.
If it generates income from such land, what will be its income tax treatment.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 August 2018 Taxable in the hands of the donee u/s 56(2)(x)(b)(A).

Income is also taxable, but can seek exemption u/s 11 if the trust is registered
u/s 12A provided it is spent for the objects of the trust.

Ankita Chachan

Ankita Chachan (Querist)
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10 August 2018 Thank u sir for ur valuable feedback :)