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capital gains

Others 305 views 13 replies
deemed capital gains applied for charitable trusts
Replies (13)
Could you please elaborate your query?
i want to know the concept of capital gain applied for charitable trust
As per Section 11(1A), if any capital Assets of trust which is WHOLLY for charitable or religious purpose is transferred;
&
with the Net Consideration received by the transfer of such assets is invested in another Capital Asset then; the capital gain on transfer shall be DEEMED TO BE APPLIED FOR CHARITABLE OR RELIGIOUS PURPOSES.

Now; One thing must be kept in mind the Capital Gain would be exempt only to the extent the Net Consideration has been invested in new assets.

To make it more simple. I would like to give you just 2 simple aspects;

1. If whole of the Net Consideration is utilised in new asset = THEN WHOLE CAPITAL GAIN WOULD BE EXEMPT.

2. if part of Net Consideration is utilised in new asset = Then Capital Gain would be exempt as Follows;

[The Amount Utilised in new Assets - The Cost of Old Assets (which is Transferred)]

and the capital gain on excess amount would be taxable normally.
Such a fine answer sir. @ Nitesh Sir, I personally like you very very much. You are the Best Expert for me.
Thanks you very much @ Rajat. n Be Helpful to One Another!
Nitesh Sir. please give me your Fb id or mail or something..!! Pleaseeee..
thanks alot sir for your help!
Okay Rajat. 🙂 Here is the way.. You just visit @ TAXEFFECTS.BLOGSPOT.COM and there is every link (Fb, Twitter etc.) is given.

Also you could send me mail at niteshkbind @ gmail.com for your Ideas, suggestions and query.
Okay sir, I will check it that right now. :-D
Sure Rajat. N @ Rajdeep You are most welcome.
zing zang is an individual manufacturing a product. he has T/O of 9850000. which is inclusive of amt of 25 lakhs recd through electronic clearing syste. the accounts are not properly maintained and you have advised him to pay tax u/s 44 AD . on how much income he will pay tax for AY 2018-19?
when to take 6% and when to take 8 %?
for receipts received any mode other than cash 6% , cash turnover @ 8%


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