Corpus donation to Trust

[DK AGGARWAL]

Respected Madam/Sir

Please guide if a Trust registered u/s 12A(a) can give corpus donation to other Trust out of the income received during the year.and the donee trust shall consider as Corpus and shall not be subject to Tax.

Will it make any difference if both the trusts are religious trusts by nature.

Can Trust having the Corpus funds. give the corpus donation to other trust as corpus donation out of the corpus funds. If so, kindly give reference in details.

D K AGGARWAL

AI Summary

Can a Trust Registered Under Section 12A(a) Donate Its Corpus to Another Trust Without Tax Implications? A query was raised regarding whether a trust registered under section 12A(a) can donate its corpus to another trust and if the donee trust can consider it as a corpus without tax implications. The question also asked if the nature of both trusts being religious affects this. Responses clarified that corpus funds cannot be used for purposes other than the primary maintenance activities of the trust. Donations to trusts registered under sections 12AA or 12(23C) are considered an application of income under section 11, provided there is no violation of section 40A(3).