Trusts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2013 When a trust recieves corpus donations whether it has to take any letter or PAN of the donee in order to claim that income exempt and what is the limit of such amount below which it doesnt needs any leeter or PAN.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 October 2013 See the whole concept of corpus donation is based on an explicit direction by the donor with regards to the use of such funds.

therefore, it shall be advisable that such directions are recorded in an unambiguous manner to avoid litigation.

It is always a good practice to obtain KYC details of such donations.

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2013 sorry sir i didnt get my answer...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 October 2013 ok let me rephrase. take a letter from the donor which should state the purpose of the donation very clearly. the purpose stated in this letter shall form the basis for you to classify it as corpus donation.

Remember information regarding PAN is not mandatory. However, it is a good practice to insist on PAN. If PAN is not available, get the basic information on record such as name of the donor and address.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2013 yes Sir thats what i am asking....is there any limit above which we have to take that letter compulsary...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 October 2013 That is what I am saying. For corpus donation you would need documentary proof to justify credit of such funds to corpus fund. Therefore letter shall be required in all the cases.

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2013 Thank you so much sir.
Can u give me a reference link for this....

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 October 2013 what reference do you want?

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