Deadline for Renewal of Charitable Trust Registrations under Sections 12A, 80G, 10(23C) Soon: File Form 10AB with AY 2027-28 Selection
While filing Form 10AB, applicants are required to select AY 2027-28 as the relevant assessment year.
The Income Tax Department has reminded charitable trusts and institutions that the last date for filing renewal applications for registrations granted under Sections 12A, 80G and 10(23C) of the Income Tax Act, 1961 is 30th September 2025. The renewal process must be completed by filing Form 10AB through the Income Tax e-filing portal.
The deadline is applicable to charitable or religious trusts whose registrations, regardless of provisional or regular, were granted and remain valid for the period beginning from Assessment Year (AY) 2022-23 up to AY 2026-27. These registrations, obtained through Form 10AC certificates under Section 12AB, Section 80G(5) or Section 10(23C)(vi), need to be revalidated in accordance with the statutory framework introduced under the Finance Act, 2020.
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While filing Form 10AB, applicants are required to select AY 2027-28 as the relevant assessment year. This is because the renewal will take effect prospectively, i.e., from the immediately succeeding assessment year after the expiry of the current validity. Any incorrect selection of assessment year may lead to complications or rejection of the application.
Tax practitioners have cautioned trusts to cross-check the approval order issued earlier in Form 10AC to ascertain the exact validity period and determine eligibility for renewal. The Central Board of Direct Taxes (CBDT) has clarified that the onus lies on trusts and institutions to file within the stipulated window.
As per Section 12AB(5) read with Rule 17A(5) of the Income Tax Rules, 1962, a renewal application must be filed at least six months prior to the expiry of the existing registration. For trusts whose approvals were granted in AY 2022-23, the five-year validity ends with AY 2026-27. Therefore, the effective statutory deadline falls within September 2025, making 30th September the cut-off date.
Unlike earlier phases where taxpayers faced technical glitches, practitioners report that the Income Tax portal is currently functioning smoothly, and Form 10AB can be filed without significant difficulty. This is expected to ease compliance for thousands of trusts and institutions preparing to meet the deadline.
Failure to renew registration within the prescribed time may result in trusts losing their exemption benefits under Sections 11 and 12, denial of 80G deduction eligibility for donors, or withdrawal of benefits under Section 10(23C). Experts advise trusts not to wait until the last date and to initiate the filing process at the earliest.
With less than a year left, charitable trusts are urged to ensure timely compliance and safeguard their tax-exempt status.
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