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Trust relating query

Esha T (Student) (420 Points)

10 July 2015

For how many years can a charitable trust carry forward its unutilised accumulated income before it becomes taxable? 5 years or 10 years? If 10 years, from which AY is it applicable?

Please do reply! Urgent!

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7 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 10 July 2015

I think its 5 yrs /articles/taxation-of-charitable-trust-20952.asp

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Esha T (Student) (420 Points)
Replied 10 July 2015

What about this? When is it applicable?

CBDT

[Refer Notification No. 24/2014 dated 01.04.2014]

CBDT has vide 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."

CMA Poornima Madhava (CMA) (13112 Points)
Replied 10 July 2015

https://www.incometaxindia.gov.in/pages/acts/finance-acts.aspx

CMA Poornima Madhava (CMA) (13112 Points)
Replied 10 July 2015

https://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Act&cname=CMSID&cval=102120000000040760&k=&IsDlg=0

Esha T (Student) (420 Points)
Replied 10 July 2015

Thanks, Poornima!

Since the above is applicable from 1-4-2016, what (how many years) is applicable for AY 2015-16?

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 10 July 2015

https://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Act&cname=CMSID&cval=102120000000040940&k=&IsDlg=0

Provided further that in respect of any income accumulated or set apart on or after the 1st day of April, 2001, the provisions of this sub-section shall have effect as if for the words "ten years" at both the places where they occur, the words "five years" had been substituted.