Profit on sale of long term mutual fund

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Profits from selling mutual funds held within a charitable trust's corpus fund are generally not taxable for trusts registered under Section 12A, provided the profits are reinvested or applied for charitable purposes. This is in line with Section 11 provisions and Supreme Court rulings. For your ITR-7 filing, report these profits in the relevant income schedules and clearly document their application or reinvestment in the corresponding application schedules to claim the exemption.

Shankar Rao

Shankar Rao (Querist)

12 September 2025 Is profit on sale of mutual fund invested out of corpus fund taxable in the hands of charitable trust registered u/s12A.
where to enter in ITR 7 please clarify

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 September 2025 The profit on the sale of mutual funds from corpus fund is not taxable in the hands of the charitable trust registered under section 12A if reinvested or applied for charitable purposes as per section 11 and Supreme Court rulings. For ITR-7, this income should be reported in the income schedules like Schedule AI or VC, and the utilization/reinvestment should be appropriately reflected in the application schedules (ER/EC). The exemption claim under section 11 is to be made accordingly.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 September 2025 Good Luck...

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