Section 11 - Income from property held for charitable or religious purposes. - Income-tax Act, 1961

1 Income from property held for charitable or religious purposes. 11. (1) Subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income- 2 [ ( a ) income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apart is not in excess of 3 [ fifteen ] per cent of the income from such property; ( b ) income derived from property held under trust in part only for such purposes, the trust having been created before the commencement of this Act, to the extent to which such income is applied to such purposes in India; and, where any such income is finally set apart for application to such purposes in India, to the extent to which the income so set apart is not in excess of 4 [ fifteen ] per cent of the income from such property; ( c ) income 5 [ derived ] from property held under trust- ( i ) created on or after the 1st day of April, 1952, for a charitable purpose which tends to promote international welfare in which India is interested, to the extent to which such income is applied to such purposes outside India, and ( ii ) for charitable or religious purposes, created before the 1st day of April, 1952, to the extent to which such income is applied to such purposes outside India: Provided that the Board, by general or special order, has directed in either case that it shall not be included in the total income of the person in receipt of such income; 6 [ ( d ) income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or 57 [ institution, subject to the condition that such voluntary contributions are invested or deposited in one or more of the forms or modes specified in sub-section (5) maintained specifically for such corpus ] . ] 7 [ 45 [Explanation 1.] - For the purposes of clauses ( a ) and ( b ),- ( 1 ) in computing the 8 [ fifteen ] per cent of the income which may be accumulated or set apart, any such voluntary contributions as are referred to in section 12 shall be deemed to be part of the income; ( 2 ) if, in the previous year, the income applied to charitable or religious purposes in India falls short of 9 [ eighty-five ] per cent of the income derived during that year from property held under trust, or, as the case may be, held under trust in part, by any amount- ( i ) for the reason that the whole or any part of the income has not been received during that year, or ( ii ) for any other reason, then- ( a ) in the case referred to in sub-clause ( i ), 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 as does not exceed the said amount, and ( b ) in the case referred to in sub-clause ( ii ), 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, may, at the option of the person in receipt of the income 43 [(such option to be exercised 65 [ at least two months prior to the due date specified ] under sub-section (1) of section 139 for furnishing the return of income, in such form and manner as may be prescribed)] be deemed to be income applied to such purposes during the previous year in which the income was derived; and the income so deemed to have been applied shall not be taken into account in calculating the amount of income applied to such purposes, in the case referred to in sub-clause ( i ), during the previous year in which the income is received or during the previous year immediately following, as the case may be, and, in the case referred to in sub-clause ( ii ), during the previous year immediately following the previous year in which the income was derived .] 46 [Explanation 2.- Any amount credited or paid, out of income referred to in clause (a) or clause (b) read with Explanation 1, 48 [ to any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 or other trust or institution registered under section 12AA 52 [ or section 12AB, as the case may be ] , being contribution with a specific direction that it shall form part of the corpus ] , shall not be treated as application of income for charitable or religious purposes. ] 47 [ Explanation 3. -For the purposes of determining the amount of application under clause (a) or clause (b), the provisions of sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) of section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head Profits and gains of business or profession .] 61 [Explanation 3A.- For the purposes of this sub-section, where the property held under a trust or institution includes any temple, mosque, gurdwara, church or other place notified under clause (b) of sub-section (2) of section 80G, any sum received by such trust or institution as voluntary contribution for the purpose of renovation or repair of such temple, mosque, gurdwara, church or other place, may, at its option, be treated by such trust or institution as forming part of the corpus of the trust or the institution, subject to the condition that the trust or the institution,- (a) applies such corpus only for the purpose for which the voluntary contribution was made; (b) does not apply such corpus for making contribution or donation to any person; (c) maintains such corpus as separately identifiable; and (d) invests or deposits such corpus in the forms and modes specified under sub-section (5) of section 11. Explanation 3B.- For the purposes of Explanation 3A, where any trust or institution has treated any sum received by it as forming part of the corpus, and subsequently any of the conditions specified in clause (a) or clause (b) or clause (c) or clause (d) of the said Explanation is violated, such sum shall be deemed to be the income of such trust or institution of the previous year during which the violation takes place. ] 58 [ Explanation 4. For the purposes of determining the amount of application under clause (a) or clause (b), (i) application for charitable or religious purposes from the corpus as referred to in clause (d) of this sub-section, shall not be treated as application of income for charitable or religious purposes: Provided that the amount not so treated as application, or part thereof, shall be treated as application for charitable or religious purposes in the previous year in which the amount, or part thereof, is invested or deposited back, into one or more of the forms or modes specified in sub-section (5) maintained specifically for such corpus, from the income of that year and to the extent of such investment or 66 [ deposit: ] 67 [ Provided further that provisions of the first proviso shall apply only if there was no violation of the conditions specified (a) in clause (c) of this sub-section; (b) in Explanations 2, 3 and 5 of this sub-section; (c) in the Explanation to this section; and (d) in clause (c) of sub-section (1) of section 13, at the time the application was made from the corpus: Provided also that the amount invested or deposited back shall not be treated as application for charitable or religious purposes under the first proviso unless such investment or deposit is made within a period of five years from the end of the previous year in which such application was made from the corpus: Provided also that nothing contained in the first proviso shall apply where application from the corpus is made on or before the 31st day of March, 2021; ] (ii) application for charitable or religious purposes, from any loan or borrowing, shall not be treated as application of income for charitable or religious purposes: Provided that the amount not so treated as application, or part thereof, shall be treated as application for charitable or religious purposes in the previous year in which the loan or borrowing, or part thereof, is repaid from the income of that year and to the extent of such repayment. 68 [ Provided further that provisions of the first proviso shall apply only if there was no violation of the conditions specified (a) in clause (c) of this sub-section; (b) in Explanations 2, 3 and 5 of this sub-section; (c) in the Explanation to this section; and (d) in clause (c) of sub-section (1) of section 13, at the time the application was made from loan or borrowing: Provided also that the amount repaid shall not be treated as application for charitable or religious purposes under the first proviso unless such repayment is made within a period of five years from the end of the previous year in which such application was made from loan or borrowing: Provided also that nothing contained in the first proviso shall apply where application from any loan or borrowing is made on or before the 31st day of March, 2021; and ] 69 [ (iii) any amount credited or paid, other than the amount referred to in Explanation 2, to any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, as the case may be, or other trust or institution registered under section 12AB, as the case may be, shall be treated as application for charitable or religious purposes only to the extent of eighty-five per cent. of such amount credited or paid. ] Explanation 5. For the purposes of this sub-section, it is hereby clarified that the calculation of income required to be applied or accumulated during the previous year shall be made without any set off or deduction or allowance of any excess application of any of the year preceding the previous year. ] 12 [ (1A) For the purposes of sub-section (1),- ( a ) where a capital asset, being property held under trust wholly for charitable or religious purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the capital gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes to the extent specified hereunder, namely:- ( i ) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of such capital gain ; ( ii ) where only a part of the net consideration is utilised for acquiring the new capital asset, so much of such capital gain as is equal to the amount, if any, by which the amount so utilised exceeds the cost of the transferred asset; ( b ) where a capital asset, being property held under trust in part only for such purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the appropriate fraction of the capital gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes to the extent specified hereunder, namely:- ( i ) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of the appropriate fraction of such capital gain; ( ii ) in any other case, so much of the appropriate fraction of the capital gain as is equal to the amount, if any, by which the appropriate fraction of the amount utilised for acquiring the new asset exceeds the appropriate fraction of the cost of the transferred asset. Explanation . -In this sub-section,- ( i ) appropriate fraction means the fraction which represents the extent to which the income derived from the capital asset transferred was immediately before such transfer applicable to charitable or religious purposes; ( ii ) cost of the transferred asset means the aggregate of the cost of acquisition (as ascertained for the purposes of sections 48 and 49) of the capital asset which is the subject of the transfer and the cost of any improvement thereto within the meaning assigned to that expression in sub-clause ( b ) of clause ( 1 ) of section 55; ( iii ) net consideration means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer. ] 13 [ (1B) Where any income in respect of which an option is exercised under clause ( 2 ) of the Explanation to sub-section (1) is not applied to charitable or religious purposes in India during the period referred to in sub-clause ( a ) or, as the case may be, sub-clause ( b ), of the said clause, then, such income shall be deemed to be the income of the person in receipt thereof- ( a ) in the case referred to in sub-clause ( i ) of the said clause, of the previous year immediately following the previous year in which the income was received; or ( b ) in the case referred to in sub-clause ( ii ) of the said clause, of the previous year immediately following the previous year in which the income was derived .] 14 [ (2) 15 [ Where 16 [ 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 :-] 44 [ (a) such person furnishes a statement in the prescribed form and in the prescribed manner to the Assessing Officer, stating 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 five years; (b) the money so accumulated or set apart is invested or deposited in the forms or modes specified in sub-section (5); (c) the statement referred to in clause (a) is furnished 70 [ at least two months prior to ] the due date specified under sub-section (1) of section 139 for furnishing the return of income for the previous year: Provided that in computing the period of five years referred to in clause (a), the period during which the income could not be applied for the purpose for which it is so accumulated or set apart, due to an order or injunction of any court, shall be excluded. ] 21 [Explanation.- Any amount credited or paid, out of income referred to in clause ( a ) or clause ( b ) of sub-section (1), read with the Explanation to that sub-section, which is not applied, but is accumulated or set apart, to any trust or institution registered under section 12AA 59 [ or section 12AB ] or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause ( iv ) or sub-clause ( v ) or sub-clause ( vi ) or sub-clause ( via ) of clause ( 23C ) of section 10, shall not be treated as application of income for charitable or religious purposes, either during the period of accumulation or thereafter. ] 22 [ (3) Any income referred to in sub-section (2) which- ( a ) is applied to purposes other than charitable or religious purposes as aforesaid or ceases to be accumulated or set apart for application thereto, or 23 [ ( b ) ceases to remain invested or deposited in any of the forms or modes specified in sub-section (5), or ] ( c ) is not utilised for the purpose for which it is so accumulated or set apart during the period referred to in clause ( a ) of that sub-section 62 [ **** ] , 24 [ ( d ) is credited or paid to any trust or institution registered under section 12AA 60 [ or section 12AB ] or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause ( iv ) or sub-clause ( v ) or sub-clause ( vi ) or sub-clause ( via ) of clause ( 23C ) of section 10, ] 63 [ shall be deemed to be the income of such person of the previous year,- (i) in which it is so applied or ceases to be so accumulated or set apart under clause (a); or (ii) in which it ceases to remain so invested or deposited under clause (b); or (iii) being the last previous year of the period, for which the income is accumulated or set apart but not utilised for the purpose for which it is so accumulated or set apart under clause (c); or (iv) in which it is credited or paid to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution under clause (d). ]] 26 [ (3A) Notwithstanding anything contained in sub-section (3), where due to circumstances beyond the control of the person in receipt of the income, any income invested or deposited in accordance with the provisions of clause ( b ) of sub-section (2) cannot be applied for the purpose for which it was accumulated or set apart, the 27 [ Assessing ] Officer may, on an application made to him in this behalf, allow such person to apply such income for such other charitable or religious purpose in India as is specified in the application by such person and as is in conformity with the objects of the trust; and thereupon the provisions of sub-section (3) shall apply as if the purpose specified by such person in the application under this sub-section were a purpose specified in the notice given to the 28 [ Assessing ] Officer under clause ( a ) of sub-section (2): ] 29 [Provided that the Assessing Officer shall not allow application of such income by way of payment or credit made for the purposes referred to in clause ( d ) of sub-section (3) of section 11: ] 30 [Provided further that in case the trust or institution, which has invested or deposited its income in accordance with the provisions of clause ( b ) of sub-section (2), is dissolved, the Assessing Officer may allow application of such income for the purposes referred to in clause ( d ) of sub-section (3) in the year in which such trust or institution was dissolved. ] (4) For the purposes of this section property held under trust includes a business undertaking so held, and where a claim is made that the income of any such undertaking shall not be included in the total income of the persons in receipt thereof, the 31 [ Assessing ] Officer shall have power to determine the income of such undertaking in accordance with the provisions of this Act relating to assessment; and where any income so determined is in excess of the income as shown in the accounts of the undertaking, such excess shall be deemed to be applied to purposes other than charitable or religious purposes 32 [ * * * ]. 33 [ (4A) Sub-section (1) or sub-section (2) or sub-section (3) or sub-section (3A) shall not apply in relation to any income of a trust or an institution, being profits and gains of business, unless the business is incidental to the attainment of the objectives of the trust or, as the case may be, institution, and separate books of account are maintained by such trust or institution in respect of such business. ] 34 [ (5) The forms and modes of investing or depositing the money referred to in clause ( b ) of sub-section (2) shall be the following, namely :- ( i ) investment in savings certificates as defined in clause ( c ) of section 2 of the Government Savings Certificates Act, 1959 (46 of 1959), and any other securities or certificates issued by the Central Government under the Small Savings Schemes of that Government; ( ii ) deposit in any account with the Post Office Savings Bank; ( iii ) deposit in any account with a scheduled bank or a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank). Explanation . -In this clause, scheduled bank means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934); ( iv ) investment in units of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963); ( v ) investment in any security for money created and issued by the Central Government or a State Government; ( vi ) investment in debentures issued by, or on behalf of, any company or corporation both the principal whereof and the interest whereon are fully and unconditionally guaranteed by the Central Government or by a State Government; ( vii ) investment or deposit in any 35 [ public sector company ]: 36 [Provided that where an investment or deposit in any public sector company has been made and such public sector company ceases to be a public sector company,- ( A ) such investment made in the shares of such company shall be deemed to be an investment made under this clause for a period of three years from the date on which such public sector company ceases to be a public sector company; ( B ) such other investment or deposit shall be deemed to be an investment or deposit made under this clause for the period up to the date on which such investment or deposit becomes repayable by such company ;] ( viii ) deposits with or investment in any bonds issued by a financial corporation which is engaged in providing long-term finance for industrial development in India and 37 [ which is eligible for deduction under clause ( viii ) of sub-section (1) of section 36 ] ; ( ix ) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and 38 [ which is eligible for deduction under clause ( viii ) of sub-section (1) of section 36 ] ; 39 [ ( ixa ) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for urban infrastructure in India. Explanation . -For the purposes of this clause,- ( a ) long-term finance means any loan or advance where the terms under which moneys are loaned or advanced provide for repayment along with interest thereof during a period of not less than five years; ( b ) public company shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956); ( c ) urban infrastructure means a project for providing potable water supply, sanitation and sewerage, drainage, solid waste management, roads, bridges and flyovers or urban transport; ] ( x ) investment in immovable property. Explanation . - Immovable property does not include any machinery or plant (other than machinery or plant installed in a building for the convenient occupation of the building) even though attached to, or permanently fastened to, anything attached to the earth; ] 40 [ ( xi ) deposits with the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964); ] 41 [ ( xii ) any other form or mode of investment or deposit as may be prescribed. ] 42 [(6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in the same or any other previous year. (7) Where a trust or an institution has been granted registration 54 [ under section 12AA or section 12AB ] or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996] [33 of 1996] and the said registration is in force for any previous year, then, nothing contained in section 10 74 [ other than clause (1), clause (23C), clause (23EA), clause (23EC), clause (23ED), clause (46), clause (46A) and clause (46B) thereof ] shall operate to exclude any income derived from the property held under trust from the total income of the person in receipt thereof for that previous year.] 64 [ Explanation .-For the purposes of this section, any sum payable by any trust or institution shall be considered as application of income in the previous year in which such sum is actually paid by it (irrespective of the previous year in which the liability to pay such sum was incurred by the trust or institution according to the method of accounting regularly employed by it): Provided that where during any previous year, any sum has been claimed to have been applied by the trust or institution, such sum shall not be allowed as application in any subsequent previous year. ] 51 [Provided that such registration shall become inoperative from the date on which the trust or institution is approved under clause (23C) of section 10 or 75 [ is notified under clause (23EA) or clause (23EC) or clause (23ED) or clause (46) ] of the said section, as the case may be, or the date on which this proviso has come into force, whichever is later 76 [ , or, the 1st day of April of the previous year relevant to the assessment year for which the exemption is claimed under clause (46B) of the said section ] : Provided further that the trust or institution, whose registration has become inoperative under the first proviso, may apply to get its registration operative 55 [ under section 12AA, ] 56 [ or section 12AB ] subject to the condition that on doing so, the approval under clause (23C) of section 10 or notification 73 [ under 77 [ clause (23EA) or ] clause (23EC) or 78 [ clause (23ED) or ] clause (46) or clause (46A) ] of the said section, as the case may be, to such trust or institution shall cease to have any effect from the date on which the said registration becomes operative and thereafter, it shall not be entitled to exemption under the respective clauses. ] ************ Notes :- 1. Section 11, which was omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989, was reintroduced by the Direct Tax Laws (Amendment) Act, 1989, with effect from the same date with modifications. 2. Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. Earlier, clauses (a) and (b) were amended by the Finance Act, 1970, w.e.f. 1-4-1971. 3 . Substituted for twenty-five by the Finance Act, 2002, w.e.f. 1-4-2003. 4. Substituted for twenty-five by the Finance Act, 2002, w.e.f. 1-4-2003. 5. Inserted by the Finance Act, 1972, w.e.f. 1-4-1973. 6. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 7. Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. Earlier, the Explanation was also substituted by the Finance Act, 1970, w.e.f. 1-4-1971. 8 . Substituted for twenty-five by the Finance Act, 2002, w.e.f. 1-4-2003. 9. Substituted for seventy-five by the Finance Act, 2002, w.e.f. 1-4-2003. 10. or sub-section (2) omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 11. , whether fixed originally or on extension omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 12. Inserted by the Finance (No. 2) Act, 1971, w.r.e.f. 1-4-1962. 13. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 14. Substituted by the Finance Act, 1970, w.e.f. 1-4-1971. 15. Substituted for the portion beginning with Where any income referred to in and ending with are complied with, namely :- by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 16. Substituted for seventy-five by the Finance Act, 2002, w.e.f. 1-4-2003. 17. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 18. Substituted by the Finance Act, 1983, w.e.f. 1-4-1983. Original clause (b) was earlier amended by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978. 19. Inserted by the Finance Act, 1993, w.r.e.f. 1-4-1962. 20. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 21. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 22. Substituted by the Finance Act, 1970, w.e.f. 1-4-1971. 23. Substituted by the Finance Act, 1983, w.e.f. 1-4-1983. 24. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 25. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 26. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 27. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 28. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 29. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 30. Inserted by the Finance Act, 2003, w.e.f. 1-4-2003. 31. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 32. and accordingly chargeable to tax within the meaning of sub-section (3) omitted by the Finance Act, 1970, w.e.f. 1-4-1971. 33. Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1992. Prior to its substitution, sub-section (4A) was inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 34. Inserted by the Finance Act, 1983, w.e.f. 1-4-1983. 35. Substituted for Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 36. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001. 37. Substituted for which is approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36 by the Finance Act, 2000, w.e.f. 1-4-2000. 38. Substituted for which is approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36 by the Finance Act, 2000, w.e.f. 1-4-2000. 39. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001. 40. Inserted by the Finance Act, 1984, w.e.f. 1-4-1985. 41. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 42. Inserted vide THE FINANCE (No. 2) ACT, 2014, w.e.f. 1st day of April, 2015 43. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, (such option to be exercised in writing before the expiry of the time allowed under sub-section (1) 10 [ * * * ] of section 139 11 [ * * * ] for furnishing the return of income) 44. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, ( a ) such person specifies, by notice in writing given to the 17 [ 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; 18 [ ( b ) the money so accumulated or set apart is invested or deposited in the forms or modes specified in sub-section (5) ]:] 19 [Provided that in computing the period of ten years referred to in clause ( a ), the period during which the income could not be applied for the purpose for which it is so accumulated or set apart, due to an order or injunction of any court, shall be excluded :] 20 [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. ] 45. Explanation is renumbered as 1 vide THE FINANCE ACT, 2017 with effect from 1st day of April, 2018 46. Inserted vide THE FINANCE ACT, 2017 with effect from 1st day of April, 2018 47. Inserted vide THE FINANCE ACT, 2018 w.e.f. 1st day of April, 2019 48. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2020 before it was read as to any other trust or institution registered under section 12AA, being contribution with a specific direction that they shall form part of the corpus of the trust or institution 49. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as under clause (b) of sub-section (1) of section 12AA 50. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as clause (1) and clause (23C) 51. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 52. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 53. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as 49 [ under section 12AA or section 12AB ] 54. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 before it was read as 53 [ under clause (b) of sub-section (1) of section 12AA ] 55. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as under section 12AB 56. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 57. Substituted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 before it was read as institution 58. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 59. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 60. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 61. Inserted vide Finance Act, 2022 w.e.f. 01-04-2021 62. Omitted vide Finance Act, 2022 w.e.f. 01-04-2023 before it was read as or in the year immediately following the expiry thereof 63. Substituted vide Finance Act, 2022 w.e.f. 01-04-2023 before it was read as shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to be so accumulated or set apart or ceases to remain so invested or deposited or 25 [ credited or paid or ] , as the case may be, of the previous year immediately following the expiry of the period aforesaid. 64. Inserted vide Finance Act, 2022 w.e.f. 01-04-2022 65. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, before the expiry of the time allowed 66. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, deposit; and 67. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 68. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 69. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 70. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, on or before 71. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was read as, and clause (46) 72. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was read as, under clause (46) 73. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was read as, under clause (46) 74. Substituted vide Section 5 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, [other than 50 [ clause (1), clause (23C) 71 [ , clause (23EC), clause (46) and clause (46A) ]] thereof] 75. Substituted vide Section 5 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, is notified 72 [ under clause (23EC), or clause (46) or clause (46A) ] 76. Inserted vide Section 5 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 77. Inserted vide Section 5 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 78. Inserted vide Section 5 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025