Corpus received by an unregistered trust .
Himanshi
(Querist) 23 October 2019
This query is : Resolved
Case law : ABC company has an amount of 2 crs in the name of mutual funds in its balance sheet . the company transferred this amount by cheque to xyz trust which is unregistered as a corpus donation .
Query is :
1. whether corpus donation of the trust be exempt or taxable in its hands. and if yes which head ?
2. reasons for the same .
3. Trust shall file its return in itr form no . ?
please reply as soon as possible .
Hemant Agarwal
(Expert) 24 October 2019
1. IF "xyz is an unregistered trust", AND "IF" ABC co. has transferred money to an unregistered trust /entity, THEN ABC Co., and the Trust,both can be criminally prosecuted for fraud, breach of trust, mischief, Benami Transaction, and so on ....
2. An unregistered trust CANNOT file any Income Tax returns and neither can avail of any benefits etc....
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
Dr J C Vashista
(Expert) 26 October 2019
ITR form number may be found out from your CA or CA Club.
"Ifs" & "buts" have no place for consideration and obligation.
However, if there is some truth in your hypothetical query show the documents to a local prudent lawyer for proper appreciation of facts, guidance and proceeding.
