Donation /gift of immovable property from ngo to ngo

Querist : Anonymous (Querist) 08 March 2020 This query is : Resolved
sir
can a NGO registered under wb societes act 1961 if allowed by its MOA can gift/donate its property to another NGO registred under wb societies act 1961/or trust ,
1. what will be tax implicable in both of ngo
2what will be registration cost
thanks awaiting ur early reply
regards
manoj

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Quick Summary

Yes, an NGO registered under the West Bengal Societies Act 1961 can donate immovable property to another NGO or trust, provided its Memorandum of Association (MOA) and bye-laws permit such a transfer. The process requires a registered instrument signed by the donor and attested by two witnesses, with registration within four months. While sales attract standard stamp duty, gifts to other NGOs typically incur nominal stamp duty, though this can vary based on state rates and whether the recipient is considered a 'family member' for duty purposes. Consulting a local lawyer is recommended for specific advice.

Dr J C Vashista (Expert) 08 March 2020
Whether there is a clause in MoA qua holding and disposal of property by a NGO ?
It is better to consult a local prudent lawyer for appreciation of facts/documents, professional guidance and necessary proceeding.

kavksatyanarayana (Expert) 08 March 2020
The NGO society can sell its property to another NGO society. Stamp duty shall be paid as Sale. If the NGO gives Gift to the other NGO, then the stamp duty will be nominal.

Raj Kumar Makkad (Expert) 08 March 2020
As per Section 122 of TOPA, a gift of immovable property made voluntarily and without consideration, by one person, called the donor (i.e. the person making the gift), to another, called the donee (i.e. the person receiving the gift), must be accepted by or on behalf of the donee during the life time of the donor.

Further, as per Section 123 of TOPA, the gift of immovable property, must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses. The deed would also have to be registered within a period of four months from the date of execution as per the provisions of the Registration Act, 1908. Additionally, since the transfer (through the gift deed), is being effected during your lifetime, it would attract stamp duty as per State Govt. rates.

NGO can also donate the immovable property in the same way if its bye-laws permit it.

krishna mohan (Expert) 09 March 2020
It is decided based on the MoA and Byelaws governing the NGO registration. If it is for consideration it can be like any other sale of property with due registration and stamp duty as applicable in your state. You can consult Legal Advisor with facts after perusal of all essential documents.

Rajendra K Goyal (Expert) 12 March 2020
It can be done only if bye laws / MOA of both the NGO permit for the same.

Consult local lawyer nd discuss in detail.

T. Kalaiselvan, Advocate (Expert) 21 March 2020
In West Bengal, the stamp duty for sale or conveyance deed is 5% of the property's market value in panchayat areas, and 6% of market value in municipal areas. In case of a gift deed, the rate is the same if the property is being gifted to a non-family member.
A NGO can transfer the immovable property to another NGO provided a resolution has been passed in this regard by the board of trustees of the NGOs despite the fact that there is a provision for such transfers in the MOA

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