Gain on sale of assets of trust

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Rajesh Heda (Querist)
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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.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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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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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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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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