Transfer of property by gift
stanley federoff
(Querist) 08 March 2014
This query is : Resolved
Charitable Trust 'A' registered in Mathura,U.P., having tax exemption, wants to gift a plot of land situated in Mathura, U.P., to Charitable Trust 'B', registered in Mumbai, having tax exemption,to B's branch in West Bengal. Can the registration and stamp duty for the said gifted land be done in West Bengal and how-if not what would be the correct procedure for the transfer of such gifted land from 'A' to 'B'?
Sri Vijayan.A
(Expert) 09 March 2014
Tax, Duty and Fee are different things.
One exempted from Tax by one department does not mean it is exempted from all the fees/ duties which are levied by other departments also.
As such, the gift deed with no consideration shall be levied with maximum stamp duty and maximum registration fee.
R.V.RAO
(Expert) 20 March 2014
section 2(15) of the Income Tax Act defines “charitable purpose” to
include “relief of the poor, education, medical relief and the advancement of any other object of general public utility”.
so there is no objection to trust A to gift land to trust B.
gift tax is also exempt on gift of cash/property by a regd.charitable trust.
so trust A enjoys gift tax exemption also.
registration of property takes place at a place where the property is situate.so regn.of land gifted by trust A to tust B at West Bengal is permitted.
only ensure that trust A has enabling provisions in its bye laws for gifting land to another trust.
