Section 11: Online Filing Income Accumulation Charitable Trust Option

By | January 21, 2016

Online Filing Charitable Trust Income Accumulation Option under section 11(1)-(2) by filing electronic Form 9A-10 under DSC-EVC-CBDT Notification-3/2016

Charitable Trust Income Accumulation/ Set Apart Option u/s 11 to be exercised electronically under DSC or EVC

Section 11 of the Income Tax Act 1961 envisages two situations when the threshold of 85% application could not be accomplished by a charitable or religious institution.

  1. S. 11(1): Where the income could not be applied due to non-receipt of the income or any other reason- the income can be accumulated for application in the year of receipt/ next previous year.
  2. S. 11(2): A general accumulated or set apart for a maximum period of 10 years is allowed.

Under both the clauses the option is to be exercised in writing to the AO before the expiry of the time allowed for furnishing of its return of income u/s 139(1) as specified in Rule 17.

CBDT vide notification no. 3/2016 dated 14-01-2016 has amended the said Rule 17. As per the amended rules:

  • Two separate Form 9A and Form 10 has been notified for exercise of option u/s 11(1) and 11(2).
  • These forms are to be filed electronically either under digital signature or under electronic verification code.


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