Trust case
This query is : Resolved
08 August 2026
Trust registered u/s 12A sold Equity mutual fund for Rs.10 lakhs on 25.03.2026 which was purchased on 12.1.2022 out of corpus fund for Rs6,00,000.
On 25.03.2026 Trust purchased another Mutual fund for Rs.10,00,000 ( means net consideration on sale of mutual fund was reinvested )
ITR 7 It was entered as followes:
Schedule AI – Sl. No. 8
Income other than Donation referred in Sec. 10, 11 & 12
Net consideration on transfer of Capital asset 10,00,000
Schedule A – Sl. No. 11
A. Expenditure of the trust/institution:
- Cost of new asset [to claim Exemption u/s 11(1A)] 10,00,000
My question is, is it needs to be entered in Capital gain Schedule also ? if entered in capital gain schedule it is showing as taxable income but in fact it is not taxable as it is reinvested in another capital asset please answer
On 25.03.2026 Trust purchased another Mutual fund for Rs.10,00,000 ( means net consideration on sale of mutual fund was reinvested )
ITR 7 It was entered as followes:
Schedule AI – Sl. No. 8
Income other than Donation referred in Sec. 10, 11 & 12
Net consideration on transfer of Capital asset 10,00,000
Schedule A – Sl. No. 11
A. Expenditure of the trust/institution:
- Cost of new asset [to claim Exemption u/s 11(1A)] 10,00,000
My question is, is it needs to be entered in Capital gain Schedule also ? if entered in capital gain schedule it is showing as taxable income but in fact it is not taxable as it is reinvested in another capital asset please answer
08 August 2026
You must enter the transaction in the Capital Gains schedule to correctly report the asset transfer and compute the gain. Although it initially appears taxable there, the tax liability is nullified because claiming the reinvestment as an application of income under Section 11(1A) in Schedule AI/A offsets the gain entirely.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Rental income gst and it purpose
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Gift Received from nonblood relative
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Reprocessing of rectification order AY 2025-26
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
