Income Tax--Exempt Entities

Maintenance of Books of Accounts by Trusts and Exempt Institutions--Law and Procedure Regarding

CA. Manoj Gupta

The Finance Act, 2022 has provided that all trusts registered under Income Tax Act either under section 12A or section 10(23C) need to maintain books of accounts in specified manner. Recently, the CBDT has inserted rule 17AA providing for books and records to be maintained by such entities. The learned author explains the law regarding maintenance of books, consequences of violation and also lists out procedural requirements.

1. Maintenance of books of accounts by trusts and exempt institutions

Clause (b) of section 12A(1) provides that where the total income of the trust or institution as computed under the Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income tax in any previous year, the accounts of the trust or institution for that year shall be audited by a chartered accountant. The maximum amount not chargeable to tax is Rs. 2,50,000 for assessment years 2022-23 and 2023-24.

The audit report is to be obtained before the specified date referred to in section 44AB (Which date is one month prior to due date for furnishing of return of income) and the person in receipt of the income has to furnish by that date such report.

Getting accounts audited where the total income of the trust or institution as computed under the Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income tax in any previous year is the condition of exemption under section 11 and 12. So, if the trust fails to get account audited and furnish the report within specified time then the exemption under section 11 and 12 will be denied to it. [The Finance Act, 2022 has provided for special manner of computation of income of such trusts in case of such violations and has provided for allowance of application of income even subject to certain conditions.]

However, there is no specific provision under the Act providing for the books of accounts to be maintained by such trusts or institutions. In order to ensure proper implementation of provisions clause (b) of sub-section (1) of section 12A of the Act and tenth proviso to clause (23C) of section 10 of the Act has been amended by the Finance Act, 2022 to provide that :

(a) where the total income of the 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 section 10(23C), without giving effect to the provisions of the said sub-clauses, exceeds the maximum amount which is not chargeable to tax in any previous year, such fund or institution or trust or any university or other educational institution or any hospital or other medical institution shall--

(i) keep and maintain books of account and other documents in such form and manner and at such place, as may be prescribed; and

(ii) get its accounts audited in respect of that year by an accountant as defined in the Explanation below sub-section (2) of section 288 before the specified date referred to in section 44AB and furnish by that date, the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

(b) where the total income of the trust or institution as computed under the Act without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year,-

(i) the books of account and other documents has to be kept and maintained in such form and manner and at such place, as may be prescribed; and

(ii) the accounts of the trust or institution for that year has to be audited by an accountant defined in the Explanation below sub-section (2) of section 288 before the specified date referred to in section 44AB and the person in receipt of the income furnishes by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars, as may be prescribed.

Provisions illustrated

Situation	Assessment Year 2022-23	Assessment Year 2023-24	Consequence of violation
A hospital approved under section 10(23C) (vi) has total income before exemption of Rs. 5,00,000.	Will have to get books of accounts audited before specified date referred to in section 44AB and to furnish report of such audit by that date. If fails to get accounts audited and furnish report by due date then will loose exemption.	Will have to maintain books of accounts and other documents in the specified form and manner. And also to get them audited before specified date referred to in section 44AB and to furnish report of such audit by that date. If fails to get accounts audited and furnish report by due date then income will be computed in specified manner.	Books are to be maintained as of now also but with the amendment books of accounts and other documents are to be maintained in the specified form and manner and if default is made then income will be computed in the manner specified in twenty second proviso to section 10(23C) inserted by the Finance Act, 2022 itself.
A trust registered under section 12A has gross receipts of 34 lakhs, exemption under section 11 of Rs. 32,00,000 and administrative expenses of Rs. 50,000. Net surplus is Rs. 1,50,000	Will have to get books of accounts audited before specified date referred to in section 44AB and to furnish report of such audit by that date. If fails to get accounts audited and furnish report by due date then will loose exemption. Caution : Many persons think that since net surplus is below Rs. 2,50,000 and hence no audit is required but that is not correct. One has to see total income before application under section 11 and if that amount is above Rs. 2,50,000 then audit is required.	Will have to maintain books of accounts and other documents in the specified form and manner. And also to get them audited before specified date referred to in section 44AB and to furnish report of such audit by that date. Caution : Many persons think that since net surplus is below Rs. 2,50,000 and hence no audit is required but that is not correct. One has to see total income before application under section 11 and if that amount is above Rs. 2,50,000 then audit is required.	Books are to be maintained as of now also but with the amendment books of accounts and other documents are to be maintained in the specified form and manner and if default is made then income will be computed in the manner specified in sub-section (10) of section 13 inserted by the Finance Act, 2022 itself.
A trust registered under section 12A has gross receipts of 2 lakhs and post application of income under section 11 net surplus is 10,000	Books not required to be audited	No need to maintain books of accounts and other documents in the specified form and manner. And also not to get them audited	No consequence of section 13(10)

2. Special mode of computation of income of trusts post certain violations

Hitherto, on happening of certain violations the trust may loose entire exemption and its income is computed on gross basis disallowing all expenses and denying application of income.

Hitherto when exemption was denied the dispute arose as to computation of total income and also applicable tax rates when exemption was denied. There is no specific provision in the Act to deal with this position and since in case of trust income cannot be computed as per any specific head of income hence as a natural corollary one has to fall back on residue head of income and in that case only such expenses as are referred to in section 57(iii) could be claimed. Thus any sum expended for objects of the trust was disallowed.

The Finance Act, 2022 has tried to address this issue by inserting new sub-sections (10) and (11) in section 13 from the assessment year 2023-24. These sub-sections provide special mode of computation of income on happening of certain violations.

(i) Violations that will trigger special mode of computation of income

On happening of any of the three following violations the income of the trust will be computed in special manner.

Violation	When such violation happen		Current tax treatment	Tax treatment from A. Y. 2023-24
When provisions of section 13(8) applies to trust	If the provisions of the first proviso to clause (15) of section 2 become applicable in the case of such person in the said previous year. i.e where the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity, unless--		Exemption under section 11 and 12 will go	Income chargeable to tax shall be computed after allowing deduction for the expenditure (other than capital expenditure) incurred in India, for the objects of the trust or institution, subject to fulfilment of certain conditions
	(i)	such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and
	(ii)	the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year
Violates section 12A(1)(b)	Where the total income of the trust or institution as computed under the Act without giving effect to the provisions of sections 11 and 12		--do--	--do--
	exceeds the maximum amount which is not chargeable to income-tax in any previous year, and it fails to --
	(i)	keep and maintain the books of account and other documents have in such form and manner and at such place, as may be prescribed; and
	(ii)	get the accounts of the trust or institution for that year audited before the specified date referred to in section 44AB and to the report of such audit by that date.
Violates section 12A (1)(ba)	The person in receipt of the income has failed to furnish the return of income for the previous year in accordance with the provisions of sub-section (4A) of section 139, within the time allowed under that section		--do--	--do--

(ii) Mode of computation of income

If any of the above violations are made then income chargeable to tax shall be computed after allowing deduction for the expenditure (other than capital expenditure) incurred in India, for the objects of the trust or institution, subject to fulfilment of the following conditions, namely :-

(a) such expenditure is not from the corpus standing to the credit of the trust or institution as on the end of the financial year immediately preceding the previous year relevant to the assessment year for which income is being computed;

(b) such expenditure is not from any loan or borrowing;

(c) 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 previous year; and

(d) such expenditure is not in the form of any contribution or donation to any person.

It is provided that for the purposes of determining the amount of expenditure under this sub-section, the provisions of sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) of section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head 'Profits and gains of business or profession'.

It is also provided that no deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed to the assessee under any other provision of the Act.

If a trust or institution registered under the Act violates the conditions as specified above then its income will be computed as under :

(a) All revenue expenses incurred in India, for the objects of the fund or institution or trust or the university or other educational institution or the hospital or other medical institution will be allowed provided they are met out of revenue receipts and not out of corpus fund standing to the credit of the fund or institution or trust or the university or other educational institution or the hospital or other medical institution as on the end of the financial year immediately preceding the previous year relevant to the assessment year for which the income is being computed.

(b) Any expenditure met out of any loan or borrowing will not be allowed.

(c) 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 previous year will not be allowed.

(d) Any contribution or donation to any other person will not be allowed.

(e) For the purposes of determining the amount of expenditure under this proviso, the provisions of sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) of section 40A shall, mutates mutandis, apply as they apply in computing the income chargeable under the head 'Profits and gains of business or profession'.

3. Special provisions for computation of income in case of certain violations [Insertion of twenty second proviso to section 10(23C)]

A new twenty second proviso to section 10(23C) has been inserted so as to provide that where 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 section 10(23C) violates the following conditions :

(a) where the total income of the 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 section 10(23C), without giving effect to the provisions of the said sub clauses, exceeds the maximum amount which is not chargeable to tax in any previous year, such fund or institution or trust or any university or other educational institution or any hospital or other medical institution and it fails to -

(i) keep and maintain books of account and other documents in such form and manner and at such place, as may be prescribed; and

(ii) get its accounts audited in respect of that year by an accountant as defined in the Explanation below sub-section (2) of section 288 before the specified date referred to in section 44AB and furnish by that date, the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

(b) the 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 section 10(23C) fails to furnish the return of income for the previous year in accordance with the provisions of sub-section (4C) of section 139, within the time allowed under that section.

(c) or where in case of such trust or institution the provisions of first proviso to section 2(15) are applicable

Then, its income chargeable to tax shall be computed after allowing deduction for the expenditure (other than capital expenditure) incurred in India, for the objects of the fund or institution or trust or the university or other educational institution or the hospital or other medical institution, subject to fulfilment of the following conditions, namely :--

(a) such expenditure is not from the corpus standing to the credit of the fund or institution or trust or the university or other educational institution or the hospital or other medical institution as on the end of the financial year immediately preceding the previous year relevant to the assessment year for which the income is being computed;

(b) such expenditure is not from any loan or borrowing;

(c) 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 previous year; and

(d) such expenditure is not in the form of any contribution or donation to any person.

It is provided that for the purposes of determining the amount of expenditure under this proviso, the provisions of sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) of section 40A shall, mutates mutandis, apply as they apply in computing the income chargeable under the head 'Profits and gains of business or profession'.

It is provided that for the purposes of computing income chargeable to tax under the twenty-second proviso, no deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed to the assessee under any other provision of the Act.

This is a big relief to trusts or institutions referred to in section 10(23C)(iv)/(v)/(vi)/(via) where such procedural lapses happen and they have to suffer consequences of denial of exemption. In such cases the department assesses income on gross basis.

Now, the clarity has been provided as to how computation of income shall be made and even income applied for the objects of trust or institution other than capital expenditure will be allowed.

So if any of the trusts or institutions referred to in section 10(23C)(iv)/(v)/(vi)/(via) violates the conditions as specified above then its income will be computed as under :

(a) All revenue expenses incurred in India, for the objects of the fund or institution or trust or the university or other educational institution or the hospital or other medical institution will be allowed provided they are met out of revenue receipts and not out of corpus fund standing to the credit of the fund or institution or trust or the university or other educational institution or the hospital or other medical institution as on the end of the financial year immediately preceding the previous year relevant to the assessment year for which the income is being computed.

(b) Any expenditure met out of any loan or borrowing will not be allowed.

(c) 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 previous year will not be allowed.

(d) Any contribution or donation to any other person will not be allowed.

(e) For the purposes of determining the amount of expenditure under this proviso, the provisions of sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) of section 40A shall, mutates mutandis, apply as they apply in computing the income chargeable under the head 'Profits and gains of business or profession'.

(f) no deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed to the assessee under any other provision of the Act.

Provisions illustrated

	Situation	Consequence
1.	ABC hospitals approved under section 10(23C) has gross receipts of Rs. 2.5 crore but fails to furnish the report of audit by due date or fails to file ITR by due date.	This will amount to specified violation and total income will be computed as discussed supra.
2.	Suppose in 1 above the assessee (a) has paid the following expenses in violation of section 40, 40A 1. Auditor's fees : Rs. 50,000 without deduction of tax 2. Rent payment: Rs. 15,000 per month in cash (b) has incurred Rs. 50 lakhs on new complex in Hospital.	Income will be computed after making following disallowances 1. Under section 40(a)(ia) : Rs. 15,000 2. Under section 40A(3) : Rs. 1,80,000 3. Rs. 50 lakhs being capital expenditure
3.	XYZ trusts received donations of Rs. 1.5 crore and fails to furnish the report of audit by due date or fails to file ITR by due date. It furnishes following data :	Income will be computed after making following adjustments : (a) Disallowance of capital expenditure on building :
	(a) Expenditure on new building complex : Rs. 2,00,000 (b) Expenditure on new computer system : Rs. 1,00,000 (c) Donation to another trust : Rs. 25,00,000	Rs. 2,00,000 (b) Disallowance of capital expenditure on computer : Rs. 1,00,000 but the assessee instead of claiming Rs. 1,00,000
	(d) Expenses paid in violation of section 40A(3) : Rs. 15,00,000 (e) Expenses payable : Rs. 3,00,000	as application of income may claim depreciation on such Rs. 1,00,000 and that will be allowed. (c) Donation to another trust will not be allowed : Rs. 25,00,000 (d) Expenses paid in violation of section 40A(3) disallowed : Rs. 15,00,000 (e) No adjustment will be made regarding expenses payable as they are not specifically mentioned in the manner of computation provided in twenty second proviso

4. Insertion of rule

In exercise of the powers conferred by clause (a) of the tenth proviso to clause (23C) of section 10 and sub-clause (i) of clause (b) of sub-section (1) of section 12A read with section 295 of the Income-tax Act, 1961 CBDT vide the Income-tax (24th Amendment) Rules, 2022 has inserted rule 17AA so as to provide for Books of account and other documents to be kept and maintained.

5. Books to be maintained

Every fund or institution or trust or any university or other educational institution or any hospital or other medical institution which is required to keep and maintain books of account and other documents under clause (a) of tenth proviso to clause (23C) of section 10 of the Act or sub-clause (i) of clause (b) of sub-section (1) of section 12A of the Act shall keep and maintain the following, namely:-

(a) books of account, including the following, namely: -

(i) cash book;

(ii) ledger;

(iii) journal;

(iv) copies of bills, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the assessee, and copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by the assessee;

(v) original bills wherever issued to the person and receipts in respect of payments made by the person;

(vi) any other book that may be required to be maintained in order to give a true and fair view of the state of the affairs of the person and explain the transactions effected.

6. Where business undertaking held under trust

As per section 11(4) for the purposes of section 11 'property held under trust' includes a business undertaking so held, and where a claim is made that the income of any such undertaking shall not be included in the total income of the persons in receipt thereof, the Assessing Officer shall have power to determine the income of such undertaking in accordance with the provisions of this Act relating to assessment; and where any income so determined is in excess of the income as shown in the accounts of the undertaking, such excess shall be deemed to be applied to purposes other than charitable or religious purposes.

If any such undertaking is so held and income of such undertaking is claimed to be exempt then books of account, as referred above, shall also be maintained for business undertaking referred in sub-section (4) of section 11 of the Act;

7. Where other business is carried on

If the trust carries on any business other than the business undertaking referred in sub-section (4) of section 11 of the Act; then books of account, as referred above, shall also be maintained for business carried on by the assessee.

8. Other documents to be maintained

Every fund or institution or trust or any university or other educational institution or any hospital or other medical institution which is required to keep and maintain books of account and other documents under clause (a) of tenth proviso to clause (23C) of section 10 of the Act or sub-clause (i) of clause (b) of sub-section (1) of section 12A of the Act shall keep and maintain the following, in addition,

(i) As to projects run: record of all the projects and institutions run by the person containing details of their name, address and objectives;

(ii) As to income of the institution: record of income of the person during the previous year, in respect of, -

(I) voluntary contribution containing details of name of the donor, address, permanent account number (if available) and Aadhaar number (if available);

(II) income from property held under trust referred to under section 11 of the Act along with list of such properties;

(III) income of fund or institution or trust or any university or other educational institution or any hospital or other medical institution other than the contribution referred in items (I) and (II);

(iii) As to application and accumulation of income: record of the following, out of the income of the person during the previous year, namely: -

(I) application of income, in India, containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(II) amount credited or paid 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 of the Act or other trust or institution registered under section 12AB of the Act, containing details of their name, address, permanent account number and the object for which such credit or payment is made;

(III) application of income outside India containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(IV) deemed application of income referred in clause (2) of Explanation 1 of sub-section (1) of section 11 of the Act containing details of the reason for availing such deemed application;

(V) income accumulated or set apart as per the provisions of the Explanation 3 to the third proviso to clause (23C) of section 10 or sub-section (2) of section 11 of the Act which has not been applied or deemed to be applied containing details of the purpose for which such income has been accumulated;

(VI) money invested or deposited in the forms and modes specified in sub-section (5) of section 11 of the Act;

(VII) money invested or deposited in the forms and modes other than those specified in subsection (5) of section 11 of the Act;

(iv) As to utilisation of accumulated income or its investments in specfied media: record of the following, out of the income of the person of any previous year preceding the current previous year, namely: -

(I) application out of the income accumulated or set apart containing details of year of accumulation, amount of application during the previous year out of such accumulation, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(II) application out of the deemed application of income referred to in clause (2) of Explanation 1 of sub-section (1) of section 11 of the Act, for any preceding previous year, containing details of year of deemed application, amount of application during the previous year out of such deemed application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(III) application, other than the application referred in item (I) and item (II), out of income accumulated during any preceding previous year containing details of year of accumulation, amount of application during the previous year out of such accumulation, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(IV) money invested or deposited in the forms and modes specified in sub-section (5) of section 11 of the Act;

(V) money invested or deposited in the forms and modes other than those specified in subsection (5) of section 11 of the Act;

(v) As to voluntary contributions: record of voluntary contribution made with a specific direction that they shall form part of the corpus, in respect of-

(I) the contribution received during the previous year containing details of name of the donor,

address, permanent account number (if available) and Aadhaar number (if available);

(II) application out of such voluntary contribution referred to in item (I) containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(III) amount credited or paid towards corpus 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 of the Act or other trust or institution registered under section 12AB of the Act, out of such voluntary contribution received during the previous year containing details of their name, address, permanent account number and the object for which such credit or payment is made;

(IV) the forms and modes specified in sub-section (5) of section 11 of the Act in which such voluntary contribution, received during the previous year, is invested or deposited;

(V) money invested or deposited in the forms and modes other than those specified in subsection (5) of section 11 of the Act in which such voluntary contribution, received during the previous year, is invested or deposited;

(VI) application out of such voluntary contribution, received during any previous year preceding the previous year, containing details of the amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(VII) amount credited or paid towards corpus 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 of the Act or other trust or institution registered under section 12AB of the Act, out of such voluntary contribution received during any year preceding the previous year, containing details of their name, address, permanent account number and the object for which such credit or payment is made;

(VIII) the forms and modes specified in sub-section (5) of section 11 of the Act in which such voluntary contribution, received during any previous year preceding the previous year, is invested or deposited;

(IX) money invested or deposited in the forms and modes other than those specified in subsection (5) of section 11 of the Act in which such voluntary contribution, received during any previous year preceding the previous year, is invested or deposited;

(X) amount invested or deposited back in to such voluntary contribution (which was applied during any preceding previous year and not claimed as application) including details of the forms and modes specified in sub-section (5) of section 11 in which such voluntary contribution is invested or deposited;

(vi) As to receipt of contribution for the purpose of renovation or repair of temple, mosque, gurdwara, church or other place notified : record of contribution received for the purpose of renovation or repair of temple, mosque, gurdwara, church or other place notified under clause (b) of sub-section (2) of section 80G which is being treated as corpus as referred in Explanation 1A to the third proviso to clause (23C) of section 10 or Explanation 3A to sub-section (1) of section 11, in respect of,-

(I) the contribution received during the previous year containing details of name of the donor, address, permanent account number (if available) and Aadhaar number (if available);

(II) contribution received during any previous year preceding the previous year, treated as corpus during the previous year, containing details of name of the donor, address, permanent account number (if available) and Aadhaar number (if available);

(III) application out of such voluntary contribution referred to in item (I) and item (II) containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(IV) amount credited or paid towards corpus 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 of the Act or other trust or institution registered under section 12AB of the Act, out of such voluntary contribution received during the previous year containing details of their name, address, permanent account number and the object for which such credit or payment is made;

(V) the forms and modes specified in sub-section (5) of section 11 of the Act in which such corpus, received during the previous year, is invested or deposited;

(VI) money invested or deposited in the forms and modes other than those specified in subsection (5) of section 11 of the Act in which such corpus, received during the previous year, is invested or deposited;

(VII) application out of such corpus, received during any previous year preceding the previous year, containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(VIII) amount credited or paid to towards corpus 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 of the Act or other trust or institution registered under section 12AB of the Act, out of such voluntary contribution received during any year preceding the previous year, containing details of their name, address, permanent account number and the object for which such credit or payment is made;

(IX) the forms and modes specified in sub-section (5) of section 11 of the Act in which such corpus, received during any previous year preceding the previous year, is invested or deposited; money invested or deposited in the forms and modes other than those specified in sub-section (5) of section 11 of the Act in which such corpus, received during any previous year preceding the previous year, is invested or deposited;

(vii) As to loans and borrowings: record of loans and borrowings,-

(I) containing information regarding amount and date of loan or borrowing, amount and date of repayment, name of the person from whom loan taken, address of lender, permanent account number and Aadhaar number( if available) of the lender;

(II) application out of such loan or borrowing containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made;

(III) application out of such loan or borrowing, received during any previous year preceding the previous year, containing details of amount of application, name and address of the person to whom any credit or payment is made;

(IV) repayment of such loan or borrowing (which was applied during any preceding previous year and not claimed as application) during the previous year;

(viii) As to properties held under trust: record of properties held by the assessee, with respect to the following, namely, -

(I) immovable properties containing details of,

(i) nature, address of the properties, cost of acquisition of the asset, registration documents of the asset;

(ii) transfer of such properties, the net consideration utilised in acquiring the new capital asset;

(II) movable properties including details of the nature and cost of acquisition of the asset;

(ix) Details of specified persons: record of specified persons, as referred to in sub-section (3) of section 13 of the Act,-

(I) containing details of their name, address, permanent account number and Aadhaar number (if available);

(II) transactions undertaken by the fund or institution or trust or any university or other educational institution or any hospital or other medical institution with specified persons as referred to in sub-section (3) of section 13 of the Act containing details of date and amount of such transaction, nature of the transaction and documents to the effect that such transaction is, directly or indirectly, not for the benefit of such specified person (x) any other documents containing any other relevant information.

9. Mode of maintenance

The books of accounts and other documents may be kept in written form or in electronic form or in digital form or as print-outs of data stored in electronic form or in digital form or any other form of electromagnetic data storage device.

10. Place of maintenance

The books of account and other documents shall be kept and maintained by the fund or institution or trust or any university or other educational institution or any hospital or other medical institution at its registered office.

It is provided that all or any of the books of account and other documents as referred to above may be kept at such other place in India as the management may decide by way of a resolution and where such a resolution is passed, the fund or institution or trust or any university or other educational institution or any hospital or other medical institution shall, within seven days thereof, intimate the jurisdictional Assessing Officer in writing giving the full address of that other place and such intimation shall be duly signed and verified by the person who is authorised to verify the return of income under section 140 of the Act, as applicable to the assessee.

11. Period of maintenance

The books of account and other documents shall be kept and maintained for a period of ten years from the end of the relevant assessment year:

It is provided that where the assessment in relation to any assessment year has been reopened under section 147 of the Act within the period specified in section 149 of the Act, the books of account and other documents which were kept and maintained at the time of reopening of the assessment shall continue to be so kept and maintained till the assessment so reopened has become final.'.