Transfer of assets
B.Chakrapani Warrier
(Querist) 14 March 2012
This query is : Resolved
A private trust registered in sub-registry with main object of establishing professional educational institutions is having immovable and movable properties. Now, the trustees want to dissolve the trust and transfer the assets and liabilities to a newly incorporated public limited company having similar objects. What is the procedure to be adopted for the transfer with particular reference to transfer of immovable properties.
A V Vishal
(Expert) 14 March 2012
How is the transfer viz is it through sale or a gift. Further, you have stated that the trust wants to transfer to a public limited company with similar objects, is the company a s.25 company since under income tax act a trust can donate to another similar trust having a 12A registration.
A V Vishal
(Expert) 14 March 2012
As per certain case laws, when a Charitable Trust donates its income to another Charitable trust, the provision of Sec. 11(1)(a) relating to the application of income to that extent can be said to have been met.
ESTHERPRIYA
(Expert) 15 March 2012
Need to go through the trust deed and see whether the trustee has right to sell or alienate the property and if yes in what means and then should get no objection from concerned IT commissioner clearance to proceed for transfer. Is the company is section 25 company?
