|Question And Answer
|Whether one Charitable Trust give Donation to another charitable Trust ?
|Advocate Shashi Ashok Bekal
|charitable trust, Donation to another charitable Trust
|May 16, 2021
One Charitable Trust with 12A and 80G registrations would like to donate to another Charitable Trust 12A and 80G registrations. In the light of the new amendments, can this be done?. If it can be done, any steps are precautions to be taken?
The Finance Act, 2017 amended section 11 of the Income-tax Act, 1961 (Act) with effect from the A.Y. 2018-19 by adding explanation 2 to section 11(1) of the Act stating that any contribution by a charitable or religious trust or institution to any other trust or institution registered under section 12AA of the Act, with a specific direction that it shall form part of corpus of recipient trust/institution shall not be treated as application of income under section 11 of the Act, for the donor trust/institution.