INTRICACIES OF THE NEWLY INSERTED RULE 17AA SPECIFYING BOOKS OF ACCOUNTS & OTHER DOCUMENTS
Prior to the Finance Act, 2022, there was no specific requirement under section 12A to maintain books of account by trusts and institutions. Although, certain provisions made it an implicit requirement to maintain the books of account.
The Finance Act, 2022 has introduced additional condition to maintain books of account by the trusts and institutions under section 12A(1)(b)(i) with effect from the assessment year 2023-24.
CBDT has notified Rule 17AA w.e.f. 10/08/2022 providing form and manner of the books of account to be maintained and also providing for place at which such books of accounts to be kept and the period for which books of accounts to be preserved.
Rule 17AA has four (4) Sub Sections [(1) to (4)] and it provides for –
a) Books of Accounts and Other documents required to be maintained [17AA(1)(a)(b)(c)&(d)]
b) Form of keeping Books of Accounts & Other documents [17AA(2)]
c) Place of maintaining such books of accounts and other documents [17AA(3)]
d) Period for which books of accounts & other documents should be kept [17AA(4)]