CBDT notified new Rule 17AA prescribing books of accounts and other documents to be kept in written form or in electronic form under section 12A
The Central Board of Direct Taxes(CBDT) has notified new Rule 17AA prescribing books and other documents to be kept and maintained by entities under clause 10(23C) or section 12A. The books of accounts and other documents may be kept in written form or in electronic form or in digital form.
These rules may be called the Income-tax (24th Amendment) Rules, 2022.
The Notification Stated, “17AA. Books of account and other documents to be kept and maintained.— (1) 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 in written form or in electronic form or in Digital Form.”
Section 12A related to eligibility of charitable trusts and/or Institutions has been amended. In order to be eligible for an exemption under Sections 11 or 12 of the Act, the books of account and other documents must be kept and maintained in the manner and at the location that may be prescribed, according to Clause (b) of Subsection (1) of Section 12A by the Finance Act of 2022, which was amended with effect from April 1, 2023.
In a similar manner, the tenth proviso to clause (23C) of section 10 had also been changed to state that in order for a fund, institution, trust, university, educational institution, hospital, or other medical institution to claim exemption under section 10(23C) of the Act, they must keep and maintain books of account and other documents in the form, manner, and location that may be prescribed.
A new rule, Rule 17AA, requiring all funds, institutions, trusts, universities and other educational institutions as well as hospitals and other medical facilities to keep and preserve books of accounts and other records has been implemented. Record of all projects and institutions, record of income from various sources, application of income, income accumulated or set aside, money invested or deposited, record of voluntary contribution, corpus, received, record of loans and borrowings, record of specified persons, etc. are additional to books of accounts.
The books of accounts and other papers may be retained in written form, electronic form, digital form, as printouts of data saved in electronic form, digital form, or any other type of electromagnetic data storage device. The fund, institution, trust, university, or other educational institution, as well as any hospital, other medical institution, shall keep the books of account and other papers mentioned in sub-rule (1) at its registered office.
For Official Notification Download PDF Given Below: