Trust given Donation to another

VISHAL KUMAR CHOUDHARY (Querist) 21 August 2010 This query is : Resolved
Please inform whether a trust can give donation to another trust and provision releated thereto as per Income Tax Act,1961.

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s.subramanian (Expert) 21 August 2010
yes. Can be given.

VISHAL KUMAR CHOUDHARY (Querist) 21 August 2010
Sir is it necessary for both the trust to have same object or object doesn't matter, please do refer the related provision of the act or any case law, if any.

soumitra basu (Expert) 21 August 2010
Go through the Trust Deed of both the Trust.

A V Vishal (Expert) 21 August 2010
The payment of a sum by one charitable trust to another for utilisation by the donee trust towards its charitable objects is proper application of income for charitable purpose in the hands of the donor trust ; and the donor trust will not lose exemption under section 11, merely because the donee trust did not spend the donation during the year of receipt itself - CBDT Instruction : No. 1132, dated 5-1-1978 [Extracted from CIT v. Sarladevi Sarabhai Trust (No. 2) [1988] 172 ITR 698 (Guj.) at p. 709].