Chartiable Institution Specified Modes of Investment
This query is : Resolved
Quick Summary
27 May 2021
If a charitable trust receives a corpus contribution for a specified purpose in the future. Let's assume to purchase a property after 5 years. Can that corpus be invested in:
1) Corporate Fixed Deposit of Bajaj Finance Ltd.
2) Equity Shares of ANY listed company.
or does one need to invest this money specifically in Specified modes of investment under section 11(5) too?
Kindly quote the act or rules before answering. The question is very relevant since today we know a lot of trusts investing in Corporate FDs of Bajaj Finance or Equity Shares of Listed Co.
1) Corporate Fixed Deposit of Bajaj Finance Ltd.
2) Equity Shares of ANY listed company.
or does one need to invest this money specifically in Specified modes of investment under section 11(5) too?
Kindly quote the act or rules before answering. The question is very relevant since today we know a lot of trusts investing in Corporate FDs of Bajaj Finance or Equity Shares of Listed Co.
27 May 2021
No charitable trust can invest in Bajaj finance and in equity shares.
If you know such investments made the concerned auditors are responsible in reporting.
Specified modes of investment under section 11(5) only allowed.
If you know such investments made the concerned auditors are responsible in reporting.
Specified modes of investment under section 11(5) only allowed.
27 May 2021
Seetharaman Sir,
Why will the Auditor falsely report the same but?
Because Section 11(5) does not allow trusts to invest in Bajaj Finance FD or Equity Shares of a Private Company.
Why will the Auditor falsely report the same but?
Because Section 11(5) does not allow trusts to invest in Bajaj Finance FD or Equity Shares of a Private Company.
27 May 2021
Auditors report only non compliance.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- GST Rate for Catering Services
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Taxability of Partnership firm for FY 2025-26
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- Portuguese Civil Code IT Return
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Bank details not Visible on Traces Portal
- Difference between Date of Payment and Date of Deduction?
- Journal entry of busniess expenses
- Cash balance limit and property purchases limit
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
