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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