Gain on sale of assets of trust
This query is : Resolved
03 October 2013
A charitable trust during the year sold its manufacturing unit for a consideration.Profit of manufacturing activity was utilised for charitable purposes in preceeding years.
The sale consideration include depreciable assets such as Plant & machinery and non depreciable assets such as Land and building.
My question is wheather STCG as well as LTCG is exempt under section 12A, or the Trust will have to pay capital gain tax.
The sale consideration include depreciable assets such as Plant & machinery and non depreciable assets such as Land and building.
My question is wheather STCG as well as LTCG is exempt under section 12A, or the Trust will have to pay capital gain tax.
03 October 2013
It is not exempted and whether STCG orLTCG depends on the holding period of the assets by trust.
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03 October 2013
Exemption from capital gains is available u/s 11 if the net consideration is utilised for acquiring another capital asset. For details please read section 11(1A) of the Income tax Act,1961.
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04 October 2013
In this case atleast it is not exempted under sec 11(1A) in the given case.
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