Amendment of section 11

In force Act 6 of 2022 As on 07 Oct 2026

Act 6 of 2022 Ministry Finance Cited by 3 provisions

Section 5 of the Finance Act, 2022 deals with amendment of section 11. Amendment of section 11. 5. In section 11 of the Income-tax Act,— (a) | in sub-section (1), after Explanation 3, the following Explanations shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2021, namely:— "Explanation 3A.—For the purposes of this sub-

Amendment of section 11.
5. In section 11 of the Income-tax Act,—
(a) in sub-section (1), after Explanation 3, the following Explanations shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2021, namely:—
"Explanation 3A.—For the purposes of this sub-section, where the property held under a trust or institution includes any temple, mosque, gurdwara, church or other place notified under clause (b) of sub-section (2) of section 80G, any sum received by such trust or institution as voluntary contribution for the purpose of renovation or repair of such temple, mosque, gurdwara, church or other place, may, at its option, be treated by such trust or institution as forming part of the corpus of the trust or the institution, subject to the condition that the trust or the institution,—
(a) applies such corpus only for the purpose for which the voluntary contribution was made;
(b) does not apply such corpus for making contribution or donation to any person;
(c) maintains such corpus as separately identifiable; and
(d) invests or deposits such corpus in the forms and modes specified under sub-section (5) of section 11.
Explanation 3B.—For the purposes of Explanation 3A, where any trust or institution has treated any sum received by it as forming part of the corpus, and subsequently any of the conditions specified in clause (a) or clause (b) or clause (c) or clause (d) of the said Explanation is violated, such sum shall be deemed to be the income of such trust or institution of the previous year during which the violation takes place.";
(b) in sub-section (3), with effect from the 1st day of April, 2023,—
(a) in clause (c), the words "or in the year immediately following the expiry thereof" shall be omitted;
(b) for the long line, the following long line shall be substituted, namely:—
"shall be deemed to be the income of such person of the previous year,—
(i) in which it is so applied or ceases to be so accumulated or set apart under clause (a); or
(ii) in which it ceases to remain so invested or deposited under clause (b); or
(iii) being the last previous year of the period, for which the income is accumulated or set apart but not utilised for the purpose for which it is so accumulated or set apart under clause (c); or
(iv) in which it is credited or paid to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution under clause (d).";
(c) after sub-section (7), the following shall be inserted, namely:—
"Explanation.—For the purposes of this section, any sum payable by any trust or institution shall be considered as application of income in the previous year in which such sum is actually paid by it (irrespective of the previous year in which the liability to pay such sum was incurred by the trust or institution according to the method of accounting regularly employed by it):
Provided that where during any previous year, any sum has been claimed to have been applied by the trust or institution, such sum shall not be allowed as application in any subsequent previous year.".
Section 5, The Finance Act, 2022 (Act 6 of 2022).

Cross-references

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Referred to by 3

Questions about Section 5

What does Section 5 of the Finance Act deal with?

Section 5 of the Finance Act is headed "Amendment of section 11". Amendment of section 11. 5. In section 11 of the Income-tax Act,— (a) | in sub-section (1), after Explanation 3, the following Explanations shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2021, namely:— "Explanation 3A.—For the purposes of this sub-

How do I find court cases under Section 5 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2022 5, section 5 Finance Act 2022, section 5 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 5 of the Finance Act, and has it changed?

Its own text turns on section 11 (Amendment of section 35), Income-tax Act 11 (Income from property held for charitable or religious purposes), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it.

When was the Finance Act enacted?

Finance Act was enacted in 2022 as Act 6 of 2022. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

First Schedule. First Schedule9792 words
2. Income-tax6839 words
42. Amendment of section 144B3753 words
4. Amendment of section 103713 words
39. Insertion of new section 140B1269 words
31. Amendment of section 115TD965 words

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(a)		in sub-section (1), after Explanation 3, the following Explanations shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2021, namely:—
		"Explanation 3A.—For the purposes of this sub-section, where the property held under a trust or institution includes any temple, mosque, gurdwara, church or other place notified under clause (b) of sub-section (2) of section 80G, any sum received by such trust or institution as voluntary contribution for the purpose of renovation or repair of such temple, mosque, gurdwara, church or other place, may, at its option, be treated by such trust or institution as forming part of the corpus of the trust or the institution, subject to the condition that the trust or the institution,—

(a)		applies such corpus only for the purpose for which the voluntary contribution was made;
(b)		does not apply such corpus for making contribution or donation to any person;
(c)		maintains such corpus as separately identifiable; and
(d)		invests or deposits such corpus in the forms and modes specified under sub-section (5) of section 11.

		Explanation 3B.—For the purposes of Explanation 3A, where any trust or institution has treated any sum received by it as forming part of the corpus, and subsequently any of the conditions specified in clause (a) or clause (b) or clause (c) or clause (d) of the said Explanation is violated, such sum shall be deemed to be the income of such trust or institution of the previous year during which the violation takes place.";
(b)		in sub-section (3), with effect from the 1st day of April, 2023,—

(a)		in clause (c), the words "or in the year immediately following the expiry thereof" shall be omitted;
(b)		for the long line, the following long line shall be substituted, namely:—

(i)		in which it is so applied or ceases to be so accumulated or set apart under clause (a); or
(ii)		in which it ceases to remain so invested or deposited under clause (b); or
(iii)		being the last previous year of the period, for which the income is accumulated or set apart but not utilised for the purpose for which it is so accumulated or set apart under clause (c); or
(iv)		in which it is credited or paid to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution under clause (d).";

(c)		after sub-section (7), the following shall be inserted, namely:—
		"Explanation.—For the purposes of this section, any sum payable by any trust or institution shall be considered as application of income in the previous year in which such sum is actually paid by it (irrespective of the previous year in which the liability to pay such sum was incurred by the trust or institution according to the method of accounting regularly employed by it):
		Provided that where during any previous year, any sum has been claimed to have been applied by the trust or institution, such sum shall not be allowed as application in any subsequent previous year.".