Accumulated Income - Section 342 (New) / Section 11 (Old)

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....art any part of its regular income for any tax year by furnishing a statement to the Assessing Officer in the prescribed form and manner. The statement must be furnished on or before the due date specified under section 263(1) for furnishing the return of income for that tax year. The statement must specify: • the purpose for which the income is being accumulated or set apart; and • the period for which it is being accumulated or set apart. The maximum period prescribed is five years. Section 342(2) - Payment or Credit to Another Registered NPO Where accumulated or set-apart income is credited or paid by one registered NPO to another registered NPO, such amount shall not be treated as application....

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.... another charitable or religious purpose in India, provided such purpose is in conformity with its objects. Section 342(7) - Accumulated Income on Dissolution Where a registered NPO is dissolved, the Assessing Officer may, on an application by the NPO in the prescribed form and manner, permit the accumulated income to be applied to another registered non-profit organisation for the tax year in which the NPO is dissolved. Comparative Analysis: Section 342 of the Income-tax Act, 2025 vs. Sections 11(2) and 11(3) of the Income-tax Act, 1961 Particulars Section 11 of Income-tax Act, 1961 Section 342 of Income-tax Act, 2025 Accumulation of income Section 11(2) permits the accumulation or setting apart of in....