Charitable application treatment: capped portion of credited amounts recognised, subject to timing and compliance conditions. Amendments require applications to be made at least two months prior to the due date, condition the benefit of the first proviso on absence of violations of specified conditions when applications are made from corpus or loans, and permit recognition of repayments or reinvestments as charitable application only if made within five years of the relevant previous year; a transitional exception preserves earlier applications. A future-effective rule restricts recognition of credited or paid amounts to a capped portion when paid to specified funds, trusts, institutions or registered entities.