Trusts to give notice for accumulation of Income (From 10) electronically from A.Y. 2014-15

CA Sandeep Kanoi

CBDT has vide notification NOTIFICATION NO. 24/2014, Dated: April 1, 2014 amended the rule 12 of Income Tax Rules, 1962 and provided that notice under clause (a) of sub-section (2) of section 11 of the Act, shall be furnished  electronically in form No. 10 w.e.f. Assessment year 2014-15 before expiry of time allowed under section 139(1). Notice Under Section 11(2)(a) is required to be given by trusts if  a trust accumulates its Income and do not want it to be included in the total income of the previous year then it have to specify, by notice in writing given to the Assessing Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years;

Relevant Extract of  clause (a) of sub-section (2) of section 11

Income from property held for charitable or religious purposes.

11. (1) ……

[(2) [Where [eighty-five] per cent of the income referred to in clause (a) or clause (b) of sub-section (1) read with the Explanation to that sub-section 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 the following conditions are complied with, namely:—]

 (a) such person specifies, by notice in writing given to the [Assessing] Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years;

Relevant Extract of Revised Rule 12 of Income Tax Rules 1962

[Return of income and return of fringe benefits.

12. (1) …

      (2) …

 [Provided that where an assessee is required to furnish a report of audit specified under sub-clause (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, clause (b) of sub-section (1) of section 12A, section 44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E or section 115JB or to give a notice under clause (a) of sub-section (2) of section 11 of the Act, he shall furnish the same electronically.]

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