Authority to Condon Delay in Filing Form 10A under Section 12A
CBDT Clarification on Authority to Condon Delay in Filing Form 10A under Section 12A
The provisions of Section 12A of the Income-tax Act, 1961 lay down the conditions that must be satisfied for a trust or institution to claim exemption under Sections 11 and 12 of the Act.
Requirement to File Form 10A
Under Section 12A(1)(ac)(i), any trust or institution seeking registration for charitable or religious purposes is required to submit an application in Form No. 10A within the time limit specified in the law.
Power to Condon Delay
With effect from 1 October 2024, a proviso was inserted in Section 12A(1)(ac). This amendment empowers the Principal Commissioner of Income-tax (PCIT) or Commissioner of Income-tax (CIT) to condone delays in filing the registration application if a valid or reasonable cause for such delay is demonstrated.
When such delay is condoned, the application will be treated as having been filed within the prescribed time limit.
Issue of Authority for Delay Condonation
As per Rule 17A(5) of the Income-tax Rules, 1962, read with relevant government notifications, the Director of Income-tax (Centralized Processing Centre), Bengaluru is the authority responsible for granting registration based on applications filed in Form 10A.
However, questions were raised regarding which authority has the power to condone delay in cases where Form 10A was not filed within the prescribed time—whether it lies with:
- the jurisdictional PCIT/CIT, or
- the Director of Income-tax (CPC), Bengaluru.
CBDT Clarification
To address this ambiguity and avoid hardship to eligible trusts or institutions, the Central Board of Direct Taxes (CBDT) has clarified that:
- The jurisdictional Principal Commissioner of Income-tax or Commissioner of Income-tax will have the authority to condone the delay in filing Form No. 10A under Section 12A(1)(ac)(i).
This clarification has been issued by the Board using its powers under Section 119(2)(b) of the Income-tax Act, which allows CBDT to grant relief in cases involving genuine hardship.
Applicability
This clarification applies to:
- Cases where Form 10A was filed after the prescribed time limit, and
- Applications for condonation of delay that are pending, or
- Applications filed on or after the date of issue of the circular.
Also Read: FAQs and Guidance notes on Forms under Income-tax Rules, 2026
Read More: Union Budget 2026 – CA Cult
