Section 16(3) in The Kerala Agricultural Income Tax Act, 1991
(3)Where seventy-five per cent of the agricultural income referred to in clause (a) or clause (b) of sub-section (1) read with the Explanation to that sub-section is not applied, or is not deemed to have been applied, to charitable or religious purposes in the State during the previous year but is accumulated or set apart, either in whole or in part, for application to such purposes in the State, such income so accumulated or set apart shall not be included in the total agricultural income of the previous year of the person in receipt of the income provided the following conditions are complied with, namely:-(a)such person specifies, by notice in writing given to the Agricultural Income tax Officer in the prescribed manner, the purpose for which the agricultural income is being accumulated or set apart and the period for which the agricultural income is to be accumulated or set apart, which shall in no case exceed ten years;(b)the money so accumulated or set apart is. -(i)invested in any Government security as defined in , clause (2) of Section 2 of the Public Debt Act, 1944 (Central Act 18 of 1944), or in any other security which may be approved by the State Government in this behalf, or(ii)deposited in any account with the Post Office Savings Bank including deposits made under the Post Office (Time Deposits) Rules, 1970 or a scheduled bank or a cooperative society engaged in carrying on the business of banking (including the Kerala State co-operative Agricultural and Rural Development Bank), or(iii)deposited in an account with the Kerala Financial Corporation established under the State Financial Corporations Act, 1951 (Central Act 63 of 1951),Explanation: - For the purposes of sub-clause (ii), "Scheduled bank" means the State Bank of India constituted under the State India Act, 1955, a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959, a corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of undertakings) Act, 1970, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 or any other bank, being a bank included in the second schedule to the Reserve Bank of India Act, 1934.
