CBDT Issues Important Clarification on Delay in Filing Form 10A
The Central Board of Direct Taxes (CBDT) has issued Circular No. 01/2026 dated 3 August 2026, clarifying which income-tax authority has the power to condone the delay in filing Form No. 10A for registration of charitable trusts and institutions under Section 12A of the Income-tax Act, 1961.
Background
Section 12A of the Income-tax Act lays down the conditions for claiming exemption under Sections 11 and 12.
Trusts and institutions seeking registration are required to submit Form No. 10A within the prescribed time. However, many organisations faced practical difficulties in meeting the deadline, resulting in uncertainty regarding the authority empowered to condone such delays.
What Has CBDT Clarified?
CBDT has clarified that the jurisdictional Principal Commissioner of Income-tax (PCIT) or Commissioner of Income-tax (CIT) shall have the authority to condone the delay in filing Form No. 10A, provided there is a reasonable cause for the delay.
This clarification has been issued under Section 119(2)(b) of the Income-tax Act, 1961 to ensure that eligible trusts and institutions are not denied registration merely because the application was filed late.
Why Was This Clarification Needed?
Although the law empowered the PCIT/CIT to condone delays from 1 October 2024, the registration process for Form 10A continued to be handled through the Director of Income-tax (Centralized Processing Centre), Bengaluru. This created uncertainty regarding which authority should decide condonation requests.
The circular removes this ambiguity by clearly assigning the power of condonation to the jurisdictional PCIT/CIT.
Applicability
The circular applies to:
- Cases where Form No. 10A was filed after the prescribed due date and the condonation request is pending, and
- Cases where the condonation application is filed on or after the date of the circular.
Why This Circular Matters
This clarification is a significant relief for charitable trusts, NGOs, educational institutions, and religious organisations seeking tax registration.
It ensures that genuine applicants are not denied registration solely due to procedural delays and provides clarity regarding the competent authority for seeking condonation.
Key Takeaways
- Circular No.: 01/2026
- Date: 3 August 2026
- Subject: Delay in filing Form 10A for registration under Section 12A.
- Condonation Authority: Jurisdictional Principal Commissioner of Income-tax (PCIT) / Commissioner of Income-tax (CIT).
- Benefit: Applicable to pending as well as future condonation applications.
Official Circular
CBDT Circular No. 01/2026 dated 3 August 2026 – Clarification regarding the power to condone delay in filing Form No. 10A under Section 12A of the Income-tax Act, 1961.
Official PDF: https://www.incometaxindia.gov.in/documents/d/guest/circular-no-1-2026-pdf
