The income tax on the income of donated property is the responsibility of which party until registration?

The responsibility for the income tax on the income generated from donated property falls onto the donee until the property is registered. This is because the donee, as the recipient of the donated property, is the one who benefits from any income or gains produced by that property. Until the property is formally registered or transferred under applicable laws, the donee is considered to be in possession of the asset and thus liable for any tax obligations it incurs.

In this context, the donor has already relinquished ownership and, therefore, any income tax responsibilities associated with that asset. The sharing of responsibility or the idea that neither party is responsible does not apply as the income tax obligation typically rests with the party in actual receipt of the income. Hence, the donee retains the responsibility for these tax implications until the formal registration is completed.