Skip to content

CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding Companies

A registered non-profit organisation accumulated income for application to its objects for a stated period, but did not apply it as required within that period. Under section 337 of the Income-tax Act, 2025, in which tax year is that unapplied portion taxed?

It is taxed in the last of the tax years for which the income was accumulated or set apart. Section 337 fixes this year for accumulated income not applied within the permitted period, rather than the year of accumulation or filing.

  1. ATax year in which the income was originally accumulated, whichever was earliest
  2. BTax year following the end of the period
  3. CThe last of the tax years for which the income was accumulated or set apartCorrect
  4. DTax year in which the organisation files its return

Explanation

Item 8 of the table says unapplied accumulated income is taxable in the last of the tax years for which income was so accumulated or set apart. The option of the following year is wrong, and filing date is irrelevant.

Did you get it right without looking?

One question tells you little. A timed set on Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding Companies shows your real accuracy, how long you take and where you lose marks.

Practise Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding CompaniesFree diagnostic mock

More Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding Companies questions