TaxTMI 
TaxTMI 
Question - What are the proposed changes regarding the accumulation of income by charitable trusts and institutions in Finance Bill 2015 ?
Rationalisation of provisions of section 11 relating to accumulation of Income by charitable trusts and institutions
28 Feb 2015 
1 Reply 
1273 Views Asked by
Accumulation of charitable income requires timely Form 10 submission and prompt return filing or accumulation benefit will be lost.
The Finance Bill 2015 requires charitable trusts and institutions to submit Form 10 before the due date for filing their return and to file that return by its due date as preconditions for claiming the accumulation-of-income exemption; failure to submit Form 10 on time or to file the return on time will disqualify the trust from the accumulation benefit and render the income taxable. The amendments take effect from 1 April 2016 and apply to the subsequent assessment year. (AI Summary)
The Finance Bill 2015 requires charitable trusts and institutions to submit Form 10 before the due date for filing their return and to file that return by its due date as preconditions for claiming the accumulation-of-income exemption; failure to submit Form 10 on time or to file the return on time will disqualify the trust from the accumulation benefit and render the income taxable. The amendments take effect from 1 April 2016 and apply to the subsequent assessment year. (AI Summary)