The gift of land to cooperative society depends on whether voluntary contribution received will always be treated as income of the trusts or institution running for charitable purpose?
a. As per section 11(1)(d) of the Income Tax Act 1961 voluntary contributions received by the trust or charitable institutions with a specific direction that the contribution shall form part of the corpus of the trust or institution shall not be treated as income of the trusts or institution.
b) As per Section 12 of the Act, any voluntary contribution not with a specific direction that it will form part of the corpus will be treated as income of the trust or institution existing for charitable purposes.
c) As per section 12A of the Income Tax Act’ 1961, the benefit of Sections 11 & 12 will be available only if the trust or the institution is registered under the Income Tax Act as a trust or charitable institution u/s 12AA.
Therefore any gift to society will depend upon the following
Firstly contribution received with a specific direction that it forms part of the corpus of the trust is treated as follows: 1) If the trust or charitable institution is registered u/s 12AA of the Income Tax Act’1961: Then not taxable 2) If the trust or institution is not registered U/s 12AA- then it is taxable as per Sec 2 (24) (iia)
B) Voluntary contribution received (without direction that it forms part of corpus) is generally taxable under the head income from other sources.