Taxability of gift made by indi. to charitable trust

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2014 An indivual has gifted an immoveabale property to charitable trust. what is the tax implication in hands of individual & trust

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

07 June 2014 sec 56 (2) is applicable to both but need amount for exact advice.

Nikhil Kaushik

Nikhil Kaushik (Expert)

08 June 2014 section 56(2) doesn't apply to charitable trusts. such giving of gift will not only be not taxed but also shall be eligible for deduction under 80G (if the trust has the registration)

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2014 Thanks,

The Individual person had given a Immoveable property valued of Rs. 21,00,000/- (stamp duty paid) is gifted to a registered Charitable trust by way gift deed. So I want know that what about tax liability in hands of Individual person ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

09 June 2014 it is taxable in the hands of individual pls refer the ammendments made by finance act 2013 in this section.

Nikhil Kaushik

Nikhil Kaushik (Expert)

09 June 2014 under which section Tushar???

Nikhil Kaushik

Nikhil Kaushik (Expert)

09 June 2014 Dear Querist,

capital gains dont apply. Section 50C wont have the play here. Section 50c dont apply to gifts.

"Though gift is a transfer, there is no question of liability for capital gain in case of gifts U/s. 45, as capital gain pre-supposes consideration for transfer and in case of gift, it is a transfer for no consideration. Sec. 50C will also be not attracted as the same is applicable only to transfers for inadequate consideration."

https://www.taxmann.com/TaxmannFlashes/Articles/flashart13-1-11_5.htm

Further, gifts to charitable trusts are not covered under section 56(2)(vii) as it applies only to individuals and HUF.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

10 June 2014 pls refer sec 56(2) and the following link under the head income from other sources sec56(2) :
https://220.227.161.86/30434bos20081aDTL.pdf

hope u will be able to check this link.

Nikhil Kaushik

Nikhil Kaushik (Expert)

10 June 2014 Dear Tushar,

quoting from your link:

"Immovable property received by an individual or HUF for inadequate consideration taxable if the difference between the stamp duty value and actual consideration exceeds Rs 50000 Section 56(2)(vii)"

Now tell me honestly, since when a charitable trust became equivalent to an individual or HUF?

In the instant case, the Individual has given the gift, not received it.

I hope you will be able to read the query once again!