Trust To Trust Fund Transfer Rules Notified By CBDT

  • CBDT clarifies provisions under the Finance Act 2023 regarding donations made by trusts to other trusts for income application. 
  • Trusts registered under sections 12AA or 12AB of the Income Tax Act 1961 are exempt, subject to certain conditions. 
  • Donations made by trusts are treated as charitable or religious purposes only to the extent of 85%. 
  • CBDT raised concerns about the taxable or eligible balance of 15% donation to other trusts. 
  • CBDT examined the matter and issued a circular clarifying the matter.
Posted in Current Affairs.