“Certain charitable/ religious institutions like hospitals, crèches, orphanages, schools, etc., often receive donations in kind from various sources for application towards their charitable purposes. These contributions are in the shape of books, clothes for the poor, grains to feed the poor, drugs, hospital equipment, etc. Section 12(1) provides any voluntary contribution, received by a trust wholly for charitable or religious purposes, will be deemed to be its income derived from property held under trust. By virtue of section 2(24)(iia) and 12, donations will be income for the purpose of section 11. Section 12(1) does not specifically exclude contribution-in-Kind. However, in the light of the fact that contribution-in-Kind is, generally, not available for application in cash and in many occasions such contribution may not have a realizable value in cash. Further, Donation in kind of assets in the form of impermissible mode of investment as per Section 11(5) may include shares, debenture of a company or jewellery to a charitable institution. Also, Donation-in-Kind is not subject to benefit of Sec. 80G and therefore, the donor are not eligible to claim any deduction u/s 80G if the donations are made in kind. Therefore, in this issue, we have discussed the concept of Donation-in-Kind, whether Donation-in-Kind is treated as Income u/s 11, Receiving Gold & Jewellery as Donation-in-Kind as Capital Receipt, Treatment of Donation-in-Kind of the assets in permissible/ impermissible mode u/s 11(5), etc. For more, please read the Ecommunique in the attachment.