M/s Medi Care Foundation, a trust registered u/s 12AB of the Income-tax Act, 1961, runs a hospital. During the financial year 2023-24, it received a…

Voluntary contribution of 95lakhs received with a specific direction that it should form part of the corpus of the trust, would be eligible for exemption, since investment in shares of M/s Healthy Care Ltd. a public sector company is permissible mode of investment under section 11 (5) . However as per provisions of section 11 (5) , where an investment is made in the shares of any public sector company and such public sector company ceases to be a public sector company, the investment so made shall be deemed to be an investment made for a period of three years from the date of such cessation. Therefore, it would continue to be eligible for exemption for a period of 3 years from the cessation date i.e., 31.3.2025 on which M/s Healthy Care Ltd., ceases to be a public sector company due to the disinvestment.