Capital Gain of Charitable Trust

Hi Ganeshan

in the year 2002, the trust had utilised the amount of Rs. 9lacs in full and it will be treated as utilisation of fund. if fund is utilised for charitable prupose, question of taxability does not arise. So for 2002 no taxability. in the year 2008 also there will not be any tax liability if at least 85% of Rs. 2lacs is utilised in the year of sale or next year. so if trust has utilised at least 1.7 lacs, there will be nil tax liability.

No treatment is to be done for money originally received (Rs. 9lacs) from the doner, as it was already utilised for the purpose mentioned while receiving the donation. it already becomes the part of copus. so not to worry about it.

Thak you Piyush. am clear. so i cant reduce cost of aquisition against current years sales consideration of Rs. 2. lacs as the same has been adjusted as utilisation of fund i r o 2002 receipt????