Section 13(1)(d)-Assessment Year 1982-83-Previous year beginning prior to 1-4-1981-Renewal of Recognition Certificate under section 80G-Clarification regarding - Income Tax - 322/1982

Section 13(1)(d)-Assessment Year 1982-83-Previous year beginning prior to 1-4-1981-Renewal of Recognition Certificate under section 80G-Clarification regarding Circular No. 322 Dated 16/1/1982 To All Commissioners of Income-tax. Sir, Subject : Section 13(1)(d)-Assessment Year 1982-83-Previous year beginning prior to 1-4-1981-Renewal of Recognition Certificate under section 80G-Clarification regarding. Section 13(1)(d) of the Income-tax Act, 1961, provides that subject to the provision of section 13(1)(bb) a trust/institution for charitable or religious purposes will lose the exemption under section 11 for assessment year commencing from assessment year 1982-83 if any funds of the trust or institution are invested or deposited or continue to remain invested or deposited for any period during any previous year commencing on or after 1-4-1981 in any of the forms or modes other than those specified in section 13(5). The Board has received references as to whether in cases where the previous year for invoking the provision of section 13(1)(d) would be assessment year 1982-83 or 1983-84. 2. The Board desire to point out that if any previous year commences on or after 1-4-1981, the provision of section 13(1)(d) would be applicable from the very first assessment year relevant to the previous year beginning after 1-4-1981. However, where the previous year commences before 1-4-1981, the provision of section 13(1)(d) will not apply for assessment year 1982-83 and the trust will not lose the exemption under section 11 merely by the application of section 13(1)(d). In such cases, renewal of recognition certificate under section 80G by the Commissioners of Income-tax would be in order. The Commissioner of Income-tax will, however, not be able to renew s. 80G certificate where the previous year begins on or after 1-4-1981 and the trust has not complied with the provision of section 13(1)(d). This position will hold good for all previous years starting after 1st April, 1981, irrespective of the assessment year involved. 3. The legal position may please be brought to the notice of all officers working in your charge particularly those assessing the cases of charitable and religious trusts. Yours faithfully, V.B. Srinivasan Secretary, Central Board of Direct Taxes. [F. No. 186/47/81-IT(AI)]