Schedule I – Details of Amounts Accumulated / Set Apart Within the meaning of section 11(2) or in terms of third proviso to section10(23C)/10(21)/10(21) read with section 35(1) AY 2026-27
Schedule I of the income tax return pertains to the reporting of income that has been accumulated or set apart by charitable or religious trusts, research institutions, and other eligible entities under provisions such as Section 11(2), the third proviso to Section 10(23C), and Section 10(21) read with Section 35(1) of the Income-tax Act.
This schedule captures details for each financial year of accumulation, including the amount set aside, the specific purpose of accumulation, and the amount applied up to the beginning of the current previous year. It further requires disclosures on the balance of such accumulated income, any portion already taxed in earlier years, and the remaining amount available for application.
This schedule also mandates reporting of amounts applied during the year for the intended purposes, amounts diverted for other purposes or transferred to other institutions. Details of investments made in specified modes under Section 11)(5) or otherwise, along with any unutilized accumulation at the end of the permissible period, must also be furnished. Where the accumulation remains unused beyond the allowable time, such income is deemed taxable under Section 11(3).
- Section10(23C)and Section 11 of Income-tax Act, 1961
A trust deriving income from a property held under trust for charitable or religious purposes is not included in its total income if such income is applied for charitable purposes in India. The application of income includes all payments and expenditures for the purpose of charitable and religious purposes in India. However, there are certain payments which are not considered as a valid application of income.
This schedule applies to ITR-7.