CBDT Clarifies Authority to Condone Delays in Filing Form No. 10A for Trust Registrations
The Central Board of Direct Taxes (CBDT) has issued Circular No. 01/2026 to clarify the procedure for trusts and institutions seeking registration under Section 12A of the Income Tax Act, 1961. The circular specifically addresses who holds the power to condone delays when Form No. 10A is filed past the prescribed deadline.
The Need for Clarification Trusts and institutions must file Form No. 10A to meet the conditions for tax exemptions under sections 11 and 12 of the Act. Effective October 1, 2024, a new proviso was added to the Act allowing for the condonation of delays if a “reasonable cause” is established. However, confusion arose because while the Director of Income Tax (Centralized Processing Centre), Bengaluru, is the statutory authority responsible for issuing the actual registration, the law also mentioned the roles of Principal Commissioners and Commissioners.
The CBDT’s Ruling To avoid “genuine hardship” and ensure that eligible trusts are not denied benefits due to minor procedural delays, the CBDT has clarified that the jurisdictional Principal Commissioner of Income-Tax (PCIT) or Commissioner of Income-Tax (CIT) has the power to condone delays in filing Form No. 10A. If the jurisdictional authority considers the cause for delay to be reasonable, the application will be deemed to have been filed within the required timeframe.
Scope and Applicability This clarification is effective immediately and applies to all cases where:
- Form No. 10A was filed beyond the prescribed time limit.
- The application for condonation is currently pending or is filed on or after March 23, 2026.
By establishing the jurisdictional PCIT/CIT as the clear authority, the CBDT aims to streamline the registration process and provide a clear path for trusts to rectify filing delays.