Circular No 01/2026, dated 23-03-2026
The Central Board of Direct Taxes (CBDT) has issued a clarification regarding the authority empowered to condone delay in filing Form No. 10A for registration under Section 12A(1)(ac)(i) of the Income-tax Act.
1. Background of the Provision
- Section 12A(1)(ac)(i) requires trusts or institutions seeking registration to file Form No. 10A within the prescribed time.
- The Finance Act, 2024 inserted a proviso allowing condonation of delay in filing such applications.
Under this proviso, the delay may be condoned if the authority is satisfied that there was a reasonable cause.
2. Issue Requiring Clarification
There was ambiguity regarding which authority is empowered to condone the delay, specifically whether:
- The jurisdictional Principal Commissioner/Commissioner of Income-tax, or
- The Director of Income-tax (Centralised Processing Centre), Bengaluru
would exercise such powers.
3. CBDT Clarification
To address this ambiguity, CBDT has clarified that:
- The jurisdictional Principal Commissioner of Income-tax or Commissioner of Income-tax shall have the authority to condone delay in filing Form No. 10A.
4. Objective of the Clarification
The clarification aims to:
- Prevent genuine hardship to trusts and institutions
- Ensure that eligible entities are not denied registration solely due to procedural delays
- Provide clarity in administrative jurisdiction for condonation requests
5. Implications for Trusts and Institutions
- Applications for condonation of delay must be made to the jurisdictional PCIT/CIT
- Trusts must demonstrate reasonable cause for delay
- Eligible entities can still obtain registration benefits despite delayed filing, subject to approval
Overall, the clarification ensures a practical and taxpayer-friendly approach while maintaining procedural discipline under the registration framework.
Click Here To Read The Full Circular
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