Section 11 query!

Others 599 views 8 replies

As per Income Tax act, if any trust is not able to apply 85% of its income in a particular year, then still it can get the exemption for the amount which it could not apply by exercising the option under clause (2) of the explanation of section 11(1)(d). Now it is also given in the act that the above option has to be exercised in writing. But it is not mentioned what does this 'WRITING' thing mean? Whether the obligation of writing is limited to passing of a resolution in the meeting or does it include submitting any document to the department? 

Anybody any idea abt this?


Sourav

Replies (8)

Dear Sourav,

Notice must be given in writing to the Assessing Officer, intimating him about your intention to exercise the option available under the Act.

Yes u will have to Write to your A.O. as hw u r going to use this unutilized amount...........

agree with pooja

 What can be the implication of not doing the above?

I have seen a Trust not following the above procedure and inspite of that getting the IT refunds every year.


Sourav

Originally posted by : Jayesh

Dear Sourav,

Notice must be given in writing to the Assessing Officer, intimating him about your intention to exercise the option available under the Act.

Where is this thing mentioned? I couldnt see it anywhere in the IT act.


Sourav

Originally posted by : Sourav Modi




Originally posted by : Jayesh






Dear Sourav,

Notice must be given in writing to the Assessing Officer, intimating him about your intention to exercise the option available under the Act.






Where is this thing mentioned? I couldnt see it anywhere in the IT act.




Sourav

Explanation 2 to section 11(1) within the time limit allowed u/s 139(1) 

pls correct me if i m wrong

Dear Sourav,

There is something called interpretation of law......u will not get exactly what i have written since it is written to expain you. (My comment was interpretation relevent section quoted by u, and it is generally done by trusts)

Thnx Jayesh.

Just to add to what u mentioned, I just came across the following link, where it is mentioned that the the time limit to exercise the option is just directory in nature and not mandatory and therefore AO can condone the delay.


https://www.incometaxforngos.org/deemed-app.htm


Sourav


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