Profit and sale of mutual fund by the trust

This query is : Resolved

Shankar Rao (Querist)
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28 January 2026 Trust registered under section 12 A has sold the mutual fund of rs 50 lakhs and and profit of rupees 14 lakhs. Entire sale proceeds of rs 50 lakhs has been Re invested in purchase of another Mutual Fund can a trust claim exemption? Or liable to pay tax on 14 lacs income

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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29 January 2026 A trust registered u/s 12A that sells mutual funds and reinvests the entire sale proceeds in another approved mutual fund can claim full exemption on capital gains under section 11(1A). Hence, ₹14 lakhs capital gain is not taxable, subject to compliance with section 11, 11(5), and 13.

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