Tax implications for donations?

Both are independent events...

When you sell shares the tax liability arise over you in relevent tax year; whether you donate the amount or not.

The donated amount is liable to tax or not depends upon whether trust has tax exemption regulation issued by ITD or not.

If the trust is registered as cheritable trust u/s. 12A of IT act, you may get some deuction in your income as stated below::

Donations to private trusts

Step 1: Find out the qualifying amount The qualifying amount under this category will be lower of the following two amounts:

a) The amount of donation

b) 10 per cent of the gross total income as reduced by all other deductions under Chapter VI-A of the Income Tax Act such as 80C (PPF, LIC etc.), 80D (mediclaim), 80CCC (pension schemes etc.).

Eligible Donation for deduction U/s. 80G

There are thousands of trusts registered in India that claim to be engaged in charitable activities. Many of them are genuine but some are untrue. In order that only genuine trusts get the tax benefits, the Government has made it compulsory for all charitable trusts to register themselves with the Income Tax Department. And for this purpose the Government has made two types of registrations necessary u/s. 12A & U/s. 80G

. Only if the trust follows the registration U/s. 12A, they will get the tax exemption certificate, which is popularly known as 80G certificate.

The government periodically releases a list of approved charitable institutions and funds that are eligible to receive donations that qualify for deduction.

The relief is available to donor to the extent only under OLD TAX REGIME.

It would be better if you gift the shares to the charity. Gifts are exempt from tax. There will not be any tax liability on you. When the charity sell the shares, the proceeds will be its income which can either be applied at least 85% or the proceeds can be used to purchase other capital assets. There will not be any tax on the charity.

@ Anurag Sharma

I think @ naval rungta is not very much bothered about where to donate.

He is interested in saving tax for himself.

Gifts taxation is on the receiver of the GIFT. 

Donating to some charity would not save tax for @ naval, who would be the giver of the GIFT