Investing the corpus fund of a trust in a business

1248 views 1 replies

I have a scenario here,

A trust wants to invest its corpus fund in a business that is not run by it. Also, such investment would fetch the trust an amount as return on investment. Now, my question is:

          1) Whether the trust can do such kind of investment from its corpus fund without affecting its IT Exemption?

          2) Whether if the trust utilises such RoI for charity purposes, it would affect the trust's 12A regn?

 

Thanks & Regards,

Replies (1)

Mr. Suraj

You are well aware of the provisions of Section 11(5) and Section 12A  of Income-tax Act, 1961.  Even then if you invest the corpus fund in a business the trust will lose its registation and thereby the income of the trust will be taxed as that of an AOP.

Best Wishes

Sathikonda

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details