Section 352 — Tax on accreted income
Old Act equivalent: Section 58 of IT Act 1961 Sub-part: Income from Other Sources — Computation
Statutory Text
- (1) Every specified person shall, in addition to the income-tax chargeable
in respect of his total income, be liable to pay additional income-tax on
accreted income at the maximum marginal rate in any of the cases specified in column B( i) and ( ii) of the Table in sub-section (4). (2) The accreted income referred to in sub-section (1) shall be computed using the following formula:— A = B – C where,— A = Accreted income; B = Aggregate fair market value of the total assets of the specified person, as on the date specified, in column C of the Table in sub-section (4), computed in accordance with such method of valuation, as may be prescribed; C = Total liability of such specified person, as on the date specified in column C of the said Table, computed in accordance with such method of valuation, as may be prescribed. (3) The accreted income, computed as per the provisions of sub-section (2) shall be reduced by such amount of accreted income as is attributable to specified assets, and liabilities, if any, related to such assets. (4) The specified person and the principal officer or trustee of such specified per - son shall be liable to pay the tax on accreted income to the credit of the Central Government within fourteen days from the due date specified in column D of the Table below: TABLE Sl. No.Case Specified date Due date for the payment of tax on accreted income A B C D (i) (ii) - The registration granted to the specified person under any speci - fied provision has been cancelled or withdrawn.The specified per - son has preferred an appeal against the order of can - cellation.The date of the or - der cancelling the registration.Date of receipt of the order in any ap - peal, confirming the cancellation of the registration, by the specified person.
- The registration granted to the specified person under any speci - fied provision has been cancelled or withdrawn.The specified per - son has not pre - ferred an appeal against such order of cancellation.The date of the or - der cancelling the registration.The date on which the period for fil - ing appeal under section 362 against the order cancel - ling the registra - tion expires.
- (a) The speci - fied person has adopted or undertak - en modifi - cation of its objects dur - ing any tax year; and (b) such modi - fied objects do not con - form to the conditions of registra - tion.The specified per - son has not ap - plied for fresh reg - istration under any specified provision in such tax year.The date of adop - tion or modifica - tion of any object.The end of such tax year.
- (a) The speci - fied person has adopted or undertak - en modifi - cation of its objects dur - ing any tax year; and (b) such modi - fied objectsThe specified per - son has applied for fresh registration under any speci - fied provision in such tax year and where such appli - cation has been re - jected and appeal has been preferred against such order of rejection.The date of adop - tion or modifica - tion of any object.The date of receipt of the order in any appeal, con - firming the can - cellation of the registration by the specified person. Sl. No.Case Specified date Due date for the payment of tax on accreted income A B C D (i) (ii) do not con - form to the conditions of registra - tion.
- (a) The speci - fied person has adopted or undertak - en modifi - cation of its objects dur - ing any tax year; and (b) such modi - fied objects do not con - form to the conditions of registra - tion.The specified per - son has applied for fresh registration under any speci - fied provision in the said tax year and where such application has been rejected and no appeal has been preferred against such order of re - jection.The date of adop - tion or modifica - tion of any object.The date on which the period for fil - ing appeal under section 362 against the order cancel - ling the registra - tion expires.
- The specified per -
son fails to make
an application as
per the provisions
of—
(a) sub-clause
(i) or ( ii) or
(iii) of the
first proviso
to section 10
(23C) of the
Income-tax
Act, 1961 (43
of 1961); or
(b) sub-clause
(i) or ( ii) or
(iii) of sec -
tion 12A(1)
(ac) of the The period spec -
ified in the re -
spective clause
or sub-clauses or
Table, as the case
may be, expires in the tax year in which the said application is to be made.The last date for making an appli - cation for regis - tration.The end of such tax year. Sl. No.Case Specified date Due date for the payment of tax on accreted income A B C D (i) (ii) Income-tax Act, 1961 (43 of 1961); or (c) as specified in section 332(3) (Ta - ble: Sl. No. 3, 4, 5 or 7). - Where a specified
person converts
itself into a form
which is not eligi -
ble for grant of reg -
istration during
any tax year.The date of such
conversion.The end of such
tax year.
68[8.The specified per -
son has merged
with any other—The date of merger. The date of merger. ]
(a) entity oth -
er than a
registered
non-profit organisa - tion; or (b) registered
non-profit organisation having Sl. No.Case Specified date Due date for the payment of tax on accreted income A B C D (i) (ii) objects same or similar to it but the said merg - er does not fulfil such conditions, as may be prescribed; or (c) registered
non-profit organisation that does not have same or similar ob - jects. - The specified
person has failed
to transfer upon
dissolution, all
its assets to any
other registered
non-profit organ -
isation within
twelve months
from the end of the
month in which
the dissolution
takes place.The date of disso -
lution.The date on which
such period of
twelve months ex -
pires.
(5) The payment of tax on the accreted income by the specified person under this
section shall be deemed as the final payment of tax in respect of the said income
and no further credit therefor shall be claimed by, or any deduction be allowed to,
the specified person or any other person in respect of the amount of tax so paid
under any other provision of this Act.
(6) Where the specified person, or the principal officer or trustee of such specified
person, fails to pay the whole or any part of the tax on the accreted income within
the time allowed under sub-section (4), such specified person, principal officer or
trustee shall be liable to pay simple interest, computed as per the following formula:—
I = 1% of (T × P)
where,—
I = interest;
T = tax on accreted income; and
P = number of months beginning on the date immediately after the last
date on which such tax was payable and ending with the date on
which the tax is actually paid including part thereof.
(7) All the provisions of this Act shall apply for the collection and recovery of
income-tax in respect of the amount of tax payable by the specified person,
principal officer or trustee and the following persons shall be deemed to be assessee in default:— ( a) the specified person and principal officer or the trustee of such specified person; ( b) the person to whom any asset forming part of the computation of accret - ed income under sub-section (2) has been transferred, where the tax on accreted income is payable under the cases specified in sub-section (4) (Table: Sl. No. 9). (8) Subject to the provisions of sub-section (7), the liability of the person referred to in clause ( b) of the said sub-section shall be limited to the extent to which the asset received by him is capable of meeting the liability. Other violations. - (1) Where any registered non-profit organisation—
( a) fails to maintain books of account under section 347; or
( b) fails to get books of account audited under section 348; or
( c) fails to furnish its return of income under section 349; or
( d) carrying out advancement of any other object of general public utility,
carries out any commercial activity in contravention of the provisions
of section 346,
during any tax year, its regular income for such tax year as reduced by the expen -
diture referred to in sub-section (3) shall be taxable regular income which shall be
chargeable to tax as per the provisions of section 334.
(2) Irrespective of the provisions of section 338, any specified income and
residual income of the registered non-profit organisation, which is not included in sub-section (1) shall also be chargeable to tax under the provisions of section 334. (3) The expenditure referred to in sub-section (1) shall be the expenditure incurred in India (other than capital expenditure) for the objects of the registered non-profit organisation, subject to the fulfilment of the following conditions:— ( a) such expenditure shall be incurred in India; ( b) such expenditure shall be for the objects of the registered non-profit organisation; ( c) such expenditure is not made from the corpus standing to the credit of the registered non-profit organisation as on the end of the tax year
immediately preceding the tax year for which income is being
computed; ( d) such expenditure is not out of any loan or borrowing; ( e) the claim of depreciation is not in respect of an asset, acquisition of which has been claimed as application of income, in the same or any other tax year; ( f) such expenditure is not in the form of any contribution or donation to any person; ( g) such expenditure is not on account of a payment or aggregate of payments made to a person in contravention to the provisions of section 36(4), (5), (6) and (7); and ( h) such payment is allowable under section 35( b)(i). (4) For the purposes of this section, no set off or deduction or allowance of any application or expenditure other than those referred to in sub-section (3) shall be allowed. - —Approval for purpose of deduction under section 133(1)( b)(ii) Application for approval for purpose of section 133(1)( b)(ii).
Provisos
None.
Explanations
None.
Tables
See statutory text above.
Cross-References
To be updated.
Notes
- Verification status: pending
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