Form 9A and Form 10 of Income Tax Act

[Krishna Murthy]

Sir, An organisation being Trust whose income is chargable under Sec 11 and 12 of Income Tax Act is allowed to accumulate its income to be utilised in the future years in case its application of income falls short of 85%. However, there are two Forms available namely Form 9A and Form 10. Should both these forms to be filed for accumulation purpose. What exactly is the difference between these two forms. Pls clarify.

AI Summary

Trusts Can Accumulate Income Under Sections 11 & 12 with Form 10; File Form 9A for Unused Income Exemption An organization structured as a trust under Sections 11 and 12 of the Income Tax Act can accumulate income for future use if its application falls short of 85%. Form 10 is required for accumulating 85% of income for up to five years, specifying its purpose. If 15% of the income is not applied within the relevant year, Form 9A must be filed, exempting it from trust income permanently. The discussion clarifies the conditions and differences between the two forms, emphasizing compliance with the amended provisions and electronic submission requirements.