New Rule 17 Inserted for Trust replacing old rule 17. As per New Rule 17,
option form to apply trust income in the year of receipt or subsequent year without
accumulating the income to filled in form 9A. Notice of accumulation u/s 11(2)
for maximum five years in old Form 10 replaced by new Form 10. Both Form 9A and
Form 10 to be filed electronically by Trust before due date u/s 139(1), either through
digital signature or electronic verification code compulsorily. Form 10 to be
used for 11(2) as well as for 10(21) i.e. research association. Accumulation by educational institutions and
medical institutions u/s 10(23C)(vi) though also limited to five years does not
require any notice. It may further be noted that assessee trust is required in
Form 9A to supply reasons for non application of income in cases where income derived
has also actually been received but not applied. No such connotation is
apparent from the provisions of the law. The law simply requires it to be
applied next year in cases of actual receipt of income which is neither applied
nor accumulated. Further new Form 10 allows one to provide different time
limits of income accumulated for different purposes. Further while old Form 10
allowed period of six months from the end of previous year to invest in modes
specified in 11(5), new form 10 requires investement/deposit in modes specified
in 11(5) by the date of furnishing Form 10. However it may also be noted that as
per clause (iia) to proviso to section 13(1)(d) period of one year from the end
of previous year in which asset is acquired
is allowed for investment/ deposit in modes specified in 11(5). Further
old Form 10 point no.3 required furnishing of accounts to provide information regarding
utilization of accumulated funds, no such information required in new Form 10.
However new Form10 also requires furnishing of information regarding all
previous accumulations. Whether information older than five years also required
is not clear ?. If so, it might prove a very onerous obligation cast especially
on old trusts. – Notification dated 14-01-2016
