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Income of charitable institution

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amit (Querist)
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14 May 2013 A charitable institution which is exempt for Tax hold shares of public company and receive dividend. Holding shares of public company is against the object clause of such institution.in such case does charitable institution get exemption on income from dividend and what about the exemption on Income from donation of such institution? any Case law on such matter will be make me more clear

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 July 2013 The entire income is to be clubbed to-gether and minimum 85% must be spent to get the exemption. Now, the logic is where from you got the money to invest in shares it is only of the Charitable trust either by way of donation or saving of 15% early earned income so the investment income is also in the nature of charity.

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