Section 13(8) - When commercial receipts exceeds the specified threshold limit Section 13(9) - Exclusion of income from the total income - Income Tax - Ready Reckoner - Income Tax

When commercial receipts exceeds the specified threshold limit - Section 13(8) This section provides that exemption under section 11 12 shall not be available for the previous year in which commercial receipts exceeds the prescribed limits u/s 2(15) , even if commissioner of Income tax has not cancelled the registration of the trust for such previous year. Such exemption shall not be available for such previous year by operation of law i.e. Section 13(8) . In such case, specific proceedings for withdrawal of registration would not be required for denial of exemption u/s 11 and 12 . In other words where the commercial turnover is exceeding from the specified limits, the denial of exemption will be automatic. Exclusion of income from the total income - Section 13(9) Nothing contained in section 11(2) shall operate so as to exclude any income from the total income of the previous year of a person in receipt thereof, if- (i) the statement referred to in clause (a) of the section 11(2) in respect of such income is not furnished on or before the due date specified u/s 139(1) for furnishing the return of income for the previous year; or (ii) the return of income for the previous year is not furnished by such person on or before the due date specified u/s 139(1) for furnishing the return of income for the said previous year . It is clarified that the statement of accumulation in Form No. 10 and Form No. 9A is required to be furnished at least two months prior to the due date of furnishing return of income so that it may be taken into account while auditing the books of account. However, the accumulation/deemed application shall not be denied to a trust as long as the statement of accumulation/deemed application is furnished on or before the due date of furnishing the return as provided in section 139(1) of the Act. [ Circular no. 6/2023 dated 24.05.2023 ] In other words, The benefit of accumulation u/s 11(2) would not be available to the assessee if return of income on or before the due date of filling of income u/s 139(1) or furnished return of income of the previous year and if the same is not filed by the due date, the exemption u/s 11(2) shall not be applicable.