indian trust act

AROKIASWAMY (Querist) 16 June 2013 This query is : Resolved
Sir
1.what are the legal procedures to give donation from one trust to another trust ?
2.what are the accounting procedures to give donation from one trust to another trust ?

Please explain this issues in details manner and including income tax law relavent,and indian trust act relvent, and legal and accounts paper works?

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DILIP KUMAR AAGARWAL (Expert) 17 June 2013
PREPARE A GIFT DEED AND PAY THE AMOUNT BY CHEQUE.UNDER THE INCOME TAX ACT THERE IS PROVISION UNDER SECTION 56(2)(V)FOR TREATING INCOME FROM OTHER SOURCE FOR ANY SUM EXECEEDING 50000/- WITHOUT ANY CONSIDRATION BY ANU INDIVIDUAL OR HUF. SO RECEIPT IS NOT A INDIVIDUAL OR HUF IN YOUR CASE SO INCOME TAX LIABILITY IS THERE. SO FAR ACCOUNTING IS CONCERN DEBIT THE RECIVING TRUST AND CREDIT THE AMOUNT GIFTED.