Donation to Trust by a Trust

[Anand Barpute]

Dear Friends Can a Charitable trust donate its assets and liabilities to other trust with similar objects or Can a trust merge with other trust with similar object If yes what are the Income tax implications of Donations and merger Which is convenient

CA Barpute

cell no 09822426111

AI Summary

Charitable trust donations preserve exemption when applied to like objects; transfers may require prior tax authority permission.
A charitable trust may donate assets to another trust for application to similar charitable objects without losing exemption, but transfers of assets and liabilities may need prior permission of the income tax authorities and must comply with state law. Accumulations under formal provisions (Form 10) do not receive the same treatment, and excess accumulation may be dealt with by applying to the assessing officer exercising variation powers. Merger remains legally uncertain but aligned Charity Commission orders reduce difficulty; donations are generally the more convenient route.