CBDT Clarifies Authority for Condonation of Delay in Filing Form No. 10A under Section 12A of Income Tax Act

The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued Circular No. 01/2026 dated March 23, 2026 providing important clarification regarding the authority empowered to condone delays in filing Form No. 10A by trusts or institutions seeking registration under Section 12A of the Income Tax Act, 1961.

Section 12A of the Income Tax Act lays down the conditions for availing benefits under Sections 11 and 12, which relate to income of charitable or religious trusts and institutions. As per existing provisions, such entities are required to file an application in Form No. 10A within the prescribed time limit to seek registration.

With effect from 1st October 2024, a proviso was introduced in Section 12A(1)(ac), empowering the Principal Commissioner of Income Tax or Commissioner of Income Tax to condone delays in filing such applications, provided there exists a reasonable cause for the delay.

However, certain references were received by the Board seeking clarification on whether the authority to condone such delays lies with the jurisdictional Principal Commissioner/Commissioner of Income Tax or with the Director of Income Tax (Centralized Processing Centre), Bengaluru, which is otherwise responsible for processing registration applications.

After careful examination of the issue, the CBDT has clarified that the power to condone delay in filing Form No. 10A under Section 12A(1)(ac)(i) shall vest with the jurisdictional Principal Commissioner of Income Tax or Commissioner of Income Tax. This clarification has been issued in exercise of the powers under Section 119(2)(b) of the Act, with the objective of avoiding genuine hardship to eligible trusts and institutions.

The Circular further states that this clarification will apply to all cases where Form No. 10A has been filed beyond the prescribed time limit and where applications for condonation of delay are pending or filed on or after the date of issuance of this Circular.

This move is expected to provide clarity and relief to charitable and religious institutions by ensuring that procedural delays do not deprive them of legitimate tax benefits.

The Circular can be accessed at: https://www.incometaxindia.gov.in/documents/d/guest/circular-no-1-2026-pdf