sridhga

Well-Known Member
#2
Can a charitable trust buy shares in Hindustan Unilever and use the dividends so earned for its charitable purposes?
Alternately, can it invest in an index fund?
Or, can it invest in a public sector company shares?
What are the tax consequences?

PS: The trust is not registered under sec 11 of the IT Act.
 
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canikhil

Well-Known Member
#3
Sridhga,

Under what section the trust is registered with in the IT Act? The charitability of the trust is determined by the nature of the registration under Income-tax act.
 

sridhga

Well-Known Member
#4
Sec 11, 12, 13 talk about charitable trusts.
Registration is in 13.
But all sections should be read together

I meant to say that we have not registered it. Although the objectives are charitable within the meanings of the charitability according to IT Act. Another way to look at it is that it is not a private discretionary trust.
 
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rinku4142

Active Member
#5
I have 7 L investment in SBI Mutual fund which i did in 2015. Now value around 18 Lakh.

I am willing to redeem it now. So my question is whether i don't need to pay capital gain tax as its fall under god father scheme

or

my investment price is consider fund value which was on Feb 2014 (i.e 12 Lakh) and need to pay capital gain tax on Rs. 6 Lakh (18 L - 12L) = 6 L
 

canikhil

Well-Known Member
#6
covered under grand fathering. You need to fill in the details in schedule 112A in your tax return.
I have 7 L investment in SBI Mutual fund which i did in 2015. Now value around 18 Lakh.

I am willing to redeem it now. So my question is whether i don't need to pay capital gain tax as its fall under god father scheme

or

my investment price is consider fund value which was on Feb 2014 (i.e 12 Lakh) and need to pay capital gain tax on Rs. 6 Lakh (18 L - 12L) = 6 L
 

rinku4142

Active Member
#7
Hi Canikhil
Thanks for reply.
You mean i don' t have to pay any capital gain tax eventhough on 1fst feb 2018 my investment value was 12 Lakh and now its Rs. 18 Lakh. Means 6 Lakh gain since feb 2018.

Are you sure?
 

rinku4142

Active Member
#9
ok got it, one more question, i found one calculator. They asking to enter FMV as on 31st jan 2018, is it same nav?
Fair Market Value (FMV)

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rinku4142

Active Member
#10
and one more question too.

If i am have earned 2 Lakh as capital gain and in same financial year my earning is 1 Lakh. Means total is 3 Lakh (Under 0% tax slab)

In that case no need to pay tax or is it mandatory to pay capital gain, even though my current financial earning is 0.
 

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