Trust-income received in kind

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2016 The trustees of a trust having exemption u/s 12A has donated a building to the trust free of cost.Whether it shall be treated as income in kind?If yes how to ascertain the value?Please explain the various implications.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 September 2016 Estimate the value and account it as donation received and show the equal value under application of income by capitalizing the asset. Disclose it under notes to the accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2016 It wont come in the receipt & payments account right Sir?So there will be a difference between the R&P and Income & Expenditure account?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 September 2016 Yes it will not come in receipt and payment ac. Yes it is.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2016 Sir,is there any specific section which states income received in kind has to be included in gross income of the trust?

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2016 Sir,is there any tax implication for the Trustees in any way?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2016 No tax implications for the trustees.