Transfer of property by one trust to another trust

4391 views 1 replies
QUERY Sir, A Trust X not registered u/s 12AA of the Income Tax Act . The Trust is running a College. Its having Land and Building and certain Liabilities. Now the Trustees decided that they are unable to run the College as well as the Trust. They decided to transfer its Property without consideration to another Trust created by some other Trustees having the same Objectives. So , the Property of Trust X i.e. Assets along with Liability are taken over by another Trust Y. The Trust Y is also not Registered u/s 12AA of the Act. They passed a Resolution in their Trust for doing the needful. Trust X donated its Land & Building etc. to the Trust Y without Consideration. Query 1. How to show the transaction in the Books of Trust X as well as in the Trust Y ? I think for Trust X, the same is Application of its Income for the same purpose by another Trust Y. And for Trust Y , its like a Corpus Fund for doing its objectives. The same be recorded at Re.1/- cost in the Books of Trust Y. 2. Whether the donation in kind will be converted into Rupee value ( Fair Market Value ) and the same will be treated as Income of the Trust? 3. What about Capital Gain Liability in the hands of Trust X? 4. What will be treatment of ownership of the Land and Building in the hands of Trust Y, if the same is not get Registered with the sub registrar with out paying the requisite Stamp Duty?
Replies (1)

"Sorry, I am not a featured member."

For featured members contact....

https://www.caclubindia.com/catalogue/featured.asp

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details