A charitable trust accumulates an amount u/s 11(2). This can be accumulated for 5 years. In subsequent years also they accumulates for the same specific purpose. Each year they have to file Form 10. Is the 5 year period starts from the first year of accumulation or 5 year period is seperate for each year.
the NGO has to given a notice to the assessing officer in Form No. 10, alongwith a certified copy of resolution passed by the governing body. This resolution should specify the purpose and the period for which the income is so accumulated. The period of accumulation cannot exceed five years under any circumstances. Earlier this period used to be ten years but has been reduced to five years with effect from 01.04.2002.
SO THE FIVE YEARS PERIOD STARTS FROM FIRST YEAR OF ACCUMULATION.....
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