Income Tax Act, 2025
Section 4: Subs. by Act 20 of 2002, s. 7, for “seventy-five per cent.” (w.e.f. 12003).
4. Subs. by Act 20 of 2002, s. 7, for “seventy-five per cent.” (w.e.f. 12003).
5. Subs. by Act 20 of 2015, s. 8, for clauses (a), (b) and the first and second provisos (w.e.f. 12016).
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the period for which the income is to be accumulated or set apart, which shall in no case exceed five
years;
(b) the money so accumulated or set apart is invested or deposited in the forms or modes
specified in sub-section (5);
(c) the statement referred to in clause (a) is furnished on or before the due date specified under
sub-section (1) of section 139 for furnishing the return of income for the previous year:
Provided that in computing the period of five years referred to in clause (a), the period during
which the income could not be applied for the purpose for which it is so accumulated or set apart, due
to an order or injunction of any court, shall be excluded.]]
1[Explanation.—Any amount credited or paid, out of income referred to in clause (a) or clause (b) of
sub-section (1), read with the Explanation to that sub-section, which is not applied, but is accumulated or
set apart, to any trust or institution registered under section 12AA or to any fund or institution or trust or
any university or other educational institution or any hospital or other medical institution referred to in
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, shall
not be treated as application of income for charitable or religious purposes, either during the period of
accumulation or thereafter.]
2[(3) Any income referred to in sub-section (2) which—
(a) is applied to purposes other than charitable or religious purposes as aforesaid or ceases to be
accumulated or set apart for application thereto, or
3[(b) ceases to remain invested or deposited in any of the forms or modes specified in
sub-section (5), or]
(c) is not utilised for the purpose for which it is so accumulated or set apart during the period
referred to in clause (a) of that sub-section or in the year immediately following the expiry thereof,
1[(d) is credited or paid to any trust or institution registered under section 12AA or to any fund or
institution or trust or any university or other educational institution or any hospital or other medical
institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of
clause (23C) of section 10,]
shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to
be so accumulated or set apart or ceases to remain so invested or deposited or credited or paid or, as the
case may be, of the previous year immediately following the expiry of the period aforesaid.
4[(3A) Notwithstanding anything contained in sub-section (3), where due to circumstances beyond the
control of the person in receipt of the income, any income invested or deposited in accordance with the
provisions of clause (b) of sub-section (2) cannot be applied for the purpose for which it was accumulated
or set apart, the 5[Assessing Officer ]may, on an application made to him in this behalf, allow such person
to apply such income for such other charitable or religious purpose in India as is specified in the
application by such person and as is in conformity with the objects of the trust; and thereupon the
provisions of sub-section (3) shall apply as if the purpose specified by such person in the application
under this sub-section were a purpose specified in the notice given to the 5[Assessing Officer] under
clause (a) ofsub-section (2):
and the first and second provisos (w.e.f. 12016).
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the period for which the income is to be accumulated or set apart, which shall in no case exceed five
years;
the money so accumulated or set apart is invested or deposited in the forms or modes
specified in sub-section
the statement referred to in clause
is furnished on or before the due date specified under
sub-section
of section 139 for furnishing the return of income for the previous year:
Provided that in computing the period of five years referred to in clause
or clause
of
sub-section
or sub-clause
or sub-clause
or sub-clause
of clause
of section 10, shall
not be treated as application of income for charitable or religious purposes, either during the period of
accumulation or thereafter.]
2[
Any income referred to in sub-section
which—
is applied to purposes other than charitable or religious purposes as aforesaid or ceases to be
accumulated or set apart for application thereto, or
3[
ceases to remain invested or deposited in any of the forms or modes specified in
sub-section
is not utilised for the purpose for which it is so accumulated or set apart during the period
referred to in clause
of that sub-section or in the year immediately following the expiry thereof,
1[
is credited or paid to any trust or institution registered under section 12AA or to any fund or
institution or trust or any university or other educational institution or any hospital or other medical
institution referred to in sub-clause
or sub-clause
or sub-clause
or sub-clause
of
clause
of section 10,]
shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to
be so accumulated or set apart or ceases to remain so invested or deposited or credited or paid or, as the
case may be, of the previous year immediately following the expiry of the period aforesaid.
4[
Notwithstanding anything contained in sub-section
of sub-section
cannot be applied for the purpose for which it was accumulated
or set apart, the 5[Assessing Officer ]may, on an application made to him in this behalf, allow such person
to apply such income for such other charitable or religious purpose in India as is specified in the
application by such person and as is in conformity with the objects of the trust; and thereupon the
provisions of sub-section
shall apply as if the purpose specified by such person in the application
under this sub-section were a purpose specified in the notice given to the 5[Assessing Officer] under
clause
ofsub-section