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CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Return of Companies

Under the Income-tax Act, 2025 (applicable from the June 2027 session), a registered non-profit organisation has had its registration cancelled and has not preferred any appeal against the cancellation order. By when must the tax on accreted income be paid?

Tax on accreted income is payable within fourteen days from the date the appeal period against the cancellation order expires. The cancellation order date is only the valuation date, not the payment due date, when no appeal is filed.

  1. AWithin fourteen days from the date on which the period for filing appeal against the cancellation order expiresCorrect
  2. BWithin fourteen days from the date of the order cancelling the registration
  3. CBy the end of the tax year in which the registration was cancelled
  4. DWithin fourteen days from the end of the tax year in which the order was passed

Explanation

Under section 352, for cancellation with no appeal, the due date is the date on which the appeal period under section 362 expires, and the tax is payable within fourteen days from that due date. The date of the cancellation order is only the specified date for valuing assets and liabilities, so the second option confuses valuation date with due date.

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