CBDT Clarifies: Commissioners Empowered to Condone Delay in Form 10A filings under Section 12A [Read Notification]

The Central Board ofDirect Taxes (CBDT) has issued a new Circular to resolve confusion over who can condone delays in filing Form 10A - the application for registration under Section 12A of the Income Tax Act, 1961.

This clarification ensures that trusts and institutions seeking tax exemptions under Sections 11 and 12 are not penalized only for late filing.

Section 12A defined as :

“12A. (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:—

[Provided that where the application is filed beyond the time allowed in sub‑clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time;]”

Under the law, trusts must file Form 10A within a prescribed time to qualify for exemptions. A proviso inserted from 1 October 2024 allowed the Principal Commissioner of Income Tax (PCIT) or Commissioner of Income Tax (CIT) to condone delays if there was a “reasonable cause.”

Also notifications had earlier designated the Director of Income Tax (Centralized Processing Centre), Bengaluru as the authority to issue registrations, creating uncertainty about who could excuse late filings.

CBDT has now clarified that jurisdictional Principal Commissioners or Commissioners of Income Tax hold the power to condone delays. This applies to all pending and future cases where Form 10A was filed beyond the deadline.

The move ensure that eligible trusts and institutions are not denied registration benefits.By assigning condonation powers to local Commissioners, the government has streamlined the registration process and reinforced its commitment to supporting charitable and non‑profit entities engaged in public welfare.

It ensures that procedural lapses do not overshadow substantive eligibility, thereby enhancing confidence among institutions that depend on tax exemptions to carry out social and developmental activities.

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