Investment in Stock Certificate as defined in the Sovereign Gold Bonds Scheme, 2015 notified as eligible form of investment by a charitable trust [Notification No. 21/2016, dated 23-03-2016]

Section 11(2)(b) provides that where 85% of the income is not applied, or is not deemed to have been applied, to charitable or religious purposes in India during the previous year but is accumulated or set apart, either in whole or in part, for application to such purposes in India, such income so accumulated or set apart shall not be included in the total income of the previous year of the person in receipt of the income, provided, inter alia, the money so accumulated or set apart is invested or deposited in the forms or modes as specified in section 11(5).

Rule 17C provides for the various forms or modes of investment or deposits by a charitable or religious trust or institution. The CBDT has, vide this notification, amended Rule 17C to insert clause (ix) to include Investment in “Stock Certificate” [as defined in clause (c) of paragraph 2 of the Sovereign Gold Bonds Scheme, 2015, published in the Official Gazette vide notification number G.S.R. 827(E), dated 30th October, 2015] as an eligible form/mode of investment.