Investments by the charitable trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2017 A trust is a charitable trust registered u/s 12A of the I T Act. Whether it can invest in mutual funds. Is it permissible under the I T Act?

Amitav

Amitav (Expert)
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11 November 2017 Yes..

Refer 10(23D) of Income Tax Act

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 November 2017 Not allowed, section 11(5) investment only allowed.

Amitav

Amitav (Expert)
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12 November 2017 Under -11(5)-
xii-any other form or mode of investment or deposits as may be prescribed as rule 17C is allowed.

As per Rule 17C of Income Tax Rules 1962- Forms or modes of Investment or deposits by a charitable or religious trust or Institution :

i-Investment in the units issued under any scheme of the mutual fund referred to in clause (23D) of section 10 of the Income Tax Act is allowed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 November 2017 Yes agreed with you.