Finance Bill, 2023 Time Limit for Furnishing Form No. 9A/10 Amended By Finance Bill, 2023

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The Tax Publishers Finance Bill, 2023--Charitable Trusts Time Limit for Furnishing Form No. 9A/10 Amended By Finance Bill, 2023 CA. Nisha Bhandari Presently the due date for furnishing Form 9A and Form 10 by the trusts or institutions is the same as the due date of furnishing of return of income. However, the audit report is required to be filed one month prior to the date of furnishing of return of income and in this report the details regarding Form 9A/10 are also required to be reported. Thus the Finance Bill, 2023 proposes to amend the time limit for furnishing Form 9A and Form 10 so as to align it with filing of tax audit report. The learned author clarifies the new time limits as proposed by the Finance Bill, 2023. 1. Option available under Explanation 1(2) to Section 11 The Explanation 1(2) to Section 11 refers to two circumstances under which the income applied to charitable or religious purposes in India may fall short of eighty five per cent of the income derived during the relevant year from property held under trust, or as the case may be, held under trust in part and still it will be deemed to have been applied. Firstly in case the whole or any part of income has not been received during that year, then so much of the income applied to such purposes in India during the previous year in which the income is received or during the previous year immediately following the year of accrual as does not exceed the said amount, may be deemed to have been applied provided the option and conditions stated below are availed of and satisfied. Secondly, where the shortfall from 85 per cent application is for any other reason, then so much of the income applied to such purposes in India during the previous year immediately following the previous year in which the income was derived as does not exceed the said amount, would be deemed to have been applied for the purposes of exemption provided the option provided for is availed of and conditions met. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Finance Bill, 2023--Charitable Trusts

Time Limit for Furnishing Form No. 9A/10 Amended By Finance Bill, 2023

CA. Nisha Bhandari

Presently the due date for furnishing Form 9A and Form 10 by the trusts or institutions is the same as the due date of furnishing of return of income. However, the audit report is required to be filed one month prior to the date of furnishing of return of income and in this report the details regarding Form 9A/10 are also required to be reported. Thus the Finance Bill, 2023 proposes to amend the time limit for furnishing Form 9A and Form 10 so as to align it with filing of tax audit report. The learned author clarifies the new time limits as proposed by the Finance Bill, 2023.

1. Option available under Explanation 1(2) to Section 11

The Explanation 1(2) to Section 11 refers to two circumstances under which the income applied to charitable or religious purposes in India may fall short of eighty five per cent of the income derived during the relevant year from property held under trust, or as the case may be, held under trust in part and still it will be deemed to have been applied. Firstly in case the whole or any part of income has not been received during that year, then so much of the income applied to such purposes in India during the previous year in which the income is received or during the previous year immediately following the year of accrual as does not exceed the said amount, may be deemed to have been applied provided the option and conditions stated below are availed of and satisfied. Secondly, where the shortfall from 85 per cent application is for any other reason, then so much of the income applied to such purposes in India during the previous year immediately following the previous year in which the income was derived as does not exceed the said amount, would be deemed to have been applied for the purposes of exemption provided the option provided for is availed of and conditions met.