Section 350 is the substantive equivalent of 1961 s. 11(5) -- the provision dealing with charitable trust -- permitted modes of investment within the special-provisions framework under Chapter XVII. The chapter covers liability frameworks…
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ITA 2025 · Section 350
Section 350 — - CHARITABLE TRUST -- PERMITTED MODES OF INVESTMENT
Section 350 is the substantive equivalent of 1961 s. 11(5) -- the provision dealing with charitable trust -- permitted modes of investment within the special-provisions framework under Chapter XVII. The chapter covers liability frameworks for: legal representatives / representative assessees / oral trusts / AOP/BOI / executor / business succession / HUF partition / NR shipping / persons leaving India / discontinued business / liquidating companies / private company directors / firms / LLPs / and CHARITABLE TRUSTS / NPOs (ss. 332-355). For charitable trusts, the framework is comprehensive: registration / regimes / regular income / specified income / corpus donations / application of income / accumulated income / commercial activities / audit / accreted-income tax / violations.
STATUTORY ARCHITECTURE: Charitable Trust -- Permitted modes of investment provides legal basis for special-case taxation. The provision integrates with broader tax-administration framework. Practitioner: identify correct provision for fact-pattern; verify procedural compliance; preserve appellate / writ remedies. CHARITABLE TRUST PROVISIONS (ss. 332-355) are particularly significant for non-profit sector compliance -- registration via s. 332 (1961 s. 12A/12AB); tax on regular income s. 334; specified income (anonymous donations etc.) s. 337 / 1961 s. 115BBC at 30%; corpus / accumulation rules; commercial-activities restrictions; accreted-income tax s. 352 / 1961 s. 115TD on conversion / dissolution. FA 2020 / FA 2022 substantially restructured the trust regime.
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