Land purchased by society at a consideration less than the circle rate (stamp duty value)

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?

Replies (6)
no exemption or deduction, it'll be be assessed under income from other sources under section 56(2)(x)
I do not know the exemption but I can tell you its taxability, if the trust purchases an immovable property without paying adequate consideration then the amt which would be taxable will be -
Amt taxable = Guideline value less actual consideration.
The difference would be taxable if and only if it exceeds 50,000 and if it exceed 50,000 the whole of it would be taxable.(suppose the difference comes to be 55,000 then 55,000 will be taxable)
Here, actual consideration means the price paid for the aforesaid property.
Section for taxability-56(2)(X).

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 ? 
 

yes... you are right Mr. amrit, if the property was received by any trust or institution, which were registered under section 12A, then they will not be covered under this section

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) ? 

 

in 56(2)(x) (c) - 56 represents section, 2 represents sub-section, x represents clause and c represents sub-clause... now have a look on exception proviso..

Provided that this clause shall not apply to any sum of money or any property received

from the above, the exception proviso applicable to 56(2)(x) on the whole and not only for sub-clause (c)

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