India - Income Tax Act 2010 - Saarc

S. 11 I.T. ACT, 1961 1.128(a) such person specifies, by notice in writing given to the 64 [Assessing]Officer in the prescribed 65 manner 66 , the purpose for which theincome is being accumulated or set apart and the period for which theincome is to be accumulated or set apart, which shall in no caseexceed ten years;67[(b) the money so accumulated 68 or set apart is invested or deposited in theforms or modes specified in sub-section (5)]:]69[Provided that in computing the period of ten years referred to in clause (a), theperiod during which the income could not be applied for the purpose for whichit is so accumulated or set apart, due to an order or injunction of any court, shallbe excluded:]70[Provided further that in respect of any income accumulated or set apart on orafter the 1st day of April, 2001, the provisions of this sub-section shall have effectas if for the words “ten years” at both the places where they occur, the words “fiveyears” had been substituted.]71[Explanation.—Any amount credited or paid, out of income referred to inclause (a) or clause (b) of sub-section (1), read with the Explanation to that subsection,which is not applied, but is accumulated or set apart, to any trust orinstitution registered under section 12AA or to any fund or institution or trust orany university or other educational institution or any hospital or other medicalinstitution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or subclause(via) of clause (23C) of section 10, shall not be treated as application ofincome for charitable or religious purposes, either during the period ofaccumulation or thereafter.]72[(3) Any income referred to in sub-section (2) which—(a) is applied to purposes other than charitable or religious purposes asaforesaid or ceases to be accumulated or set apart for applicationthereto, or73[(b) ceases to remain invested or deposited in any of the forms or modesspecified in sub-section (5), or]64. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.65. See rule 17 and Form No. 10 for notice of accumulation of income by charitable trust orinstitution [to be furnished before expiry of time allowed under section 139(1)].66. For the meaning of expression “in the prescribed manner”, see Taxmann’s Direct TaxesManual, Vol. 3.67. Substituted by the Finance Act, 1983, w.e.f. 1-4-1983. Original clause (b) was earlieramended by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.68. For the meaning of the expression “the money so accumulated”, see Taxmann’s DirectTaxes Manual, Vol. 3.69. Inserted by the Finance Act, 1993, w.r.e.f. 1-4-1962.70. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002.71. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.72. Substituted by the Finance Act, 1970, w.e.f. 1-4-1971.73. Substituted by the Finance Act, 1983, w.e.f. 1-4-1983.