Earlier we had discussed in few of our post that the due date for completing Audit in case of trust is 31.08.2023, as the due date for filing Form 10 for accumulation of fund is 31.08.2023 as per section 11(2) of the Income Tax Act as new provision of section 115BBI has been intoduced.
To read more CLICK HERE: Due date to complete Tax audit of Trust is 31.08.2023 and not 30.09.2023. Here’s why? – Taxontips
However, there was a circular issued by Income tax department i.e. Circular no. 6 of 2023 Dt. 24.05.2023 wherein the Income tax department had provided a relaxation as well as issued a clarification with regard to the due date for filing Form 10 and Form 9A for accumulation of fund and for deemed application.
In the above circular it was clarified that due to various representations it has been clarified that all accumulation for which Form 10 is filed till due date of filing of income tax return u/s 139(1) of the Act, shall be allowed.
Relevant extract of the circular is as under:
“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 sub-section (1) of section 139 of the Act.
We had covered this circular in our earlier post. To read more about the circular CLICK HERE: Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act – Taxontips
Thus, as per the above circular the Trust can still take benefit of accumulation if Form 10 is filed till due date of filing return of income u/s 139(1) of the Act.
We apologize for the details provided earlier and regret for the inconvenience caused.
We would like to Thank CA Monark Padmani for bringing the point before us to help our audience and guiding our audience as always.
Monark Padmani (C.A., B.Com.)
He is having experience in dealing Assessments, Litigation (like CIT, ITAT and HC), Search-Seizure Matters and Income Tax Settlement Commission.