Question And Answer
Subject: Sale of immovable assets by a Charitable trust
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Querist: S.Thyagarajan
Answered by:
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Date: June 20, 2026
Query asked by S.Thyagarajan

whether a proposal for sale of immovable assets by a charitable trust requires a prior approval of the Director of Exemptions even when the Act is silent about such requirements. The Trust deed contains such an obligation, which was inserted at the time of registration based on Directions given by the then CIT in the form of a rectification deed to facilitate the Registration. Is there any recent Notification to the effect that such approval is not required?

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Answer given by

There is no statutory requirement under the Income Tax Act for prior approval from the Director of Exemptions (or any other authority) for the sale of immovable property by a charitable trust registered u/s 12A/12AB.

However, if such a clause is there in the trust deed, the trustees are bound by it and will have to follow it.



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