The Finance Act, 2022 had amended Section 12A(1)(b) and tenth proviso to Section 10(23C) of the IT Act so as to mandatorily provide for maintaining books of account and other documents in a prescribed form and manner and at a prescribed place where the total income of certain Trust or Institution, without giving effect to the provisions of Section 10(23C) or section 11 and 12, exceeds the maximum amount not chargeable to tax.
In accordance with the said amendment, the CBDT has vide Notification No. 94/2022 dated 10.08.2022 introduced Income-tax (24th Amendment) Rules, 2022 to amend the Income-tax Rules, 1962 for the purpose of notifying new Rule 17AA. The said new Rule 17AA prescribes a comprehensive list of Books of accounts and other records to be maintained on the basis of which certain Trusts and Institutions are allowed tax exemption under the Income Tax Law.
This Newsflash provides a brief overview on the said notification summarizing the rules pertaining to maintenance of such books and accounts, place and period of its maintenance.