M/s Life Care Foundation, a trust registered under section 12AB of the Income-tax Act, 1961, runs a hospital. During the financial year 2024-25, it…

Voluntary contribution of 105lakhs 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 National Health Services 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., 31.3.2026 on which M/s National Health Services Ltd., ceases to be a public sector company due to the disinvestment.