CBDT Brings Relief for Charitable Trusts: Delay in Filing Form 10AB Condoned for 80G Renewal
A Timely Relief for Genuine Charitable Institutions
By CA. Naresh Jakhotia
Charitable trusts and institutions often work tirelessly for public welfare. However, procedural lapses can sometimes jeopardize their tax approvals and, consequently, their ability to receive donations. Recognizing this practical difficulty, the Central Board of Direct Taxes (CBDT) has issued Circular No. 06/2026 dated 02.07.2026, providing significant relief to charitable institutions that missed the due date for filing Form No. 10AB for renewal of approval under Section 80G(5) of the Income-tax Act.
The circular condones the delay in specified cases and ensures that genuine institutions are not deprived of approval merely because of a procedural delay.
Why is Form 10AB Important?
Institutions approved under Section 80G enable donors to claim deduction for donations made to them. However, such approval is not perpetual. Where the approval is due to expire, the institution is required to apply for renewal by filing Form No. 10AB electronically within the prescribed time.
For institutions whose approval was expiring on 31st March 2026, the prescribed due date for filing Form No. 10AB was 30th September 2025.
Unfortunately, many genuine institutions could not file the application within the stipulated period due to various bona fide reasons such as lack of awareness, technical issues, change in management, or other unavoidable circumstances.
CBDT Recognizes Genuine Hardship
Several representations were made before the CBDT highlighting that the delay was unintentional and that rejection of applications merely on technical grounds would seriously affect charitable activities as well as donations received from the public.
Accepting these representations, CBDT has exercised its powers under Section 119(2)(b) of the Income-tax Act, 1961, read with Section 536(2) of the Income-tax Act, 2025, and has condoned the delay in deserving cases.
Who Gets the Benefit?
The circular grants relief where:
The trust or institution was required to seek renewal of approval under clause (ii) of the first proviso to Section 80G(5).
Form No. 10AB has been filed electronically between 1st October 2025 and 31st March 2026.
Such delayed applications shall now be treated as valid despite being filed after the original due date.
What About Applications Already Rejected?
The relief is even more beneficial because CBDT has clarified that if an application filed between 1st October 2025 and 31st March 2026 had already been rejected solely because it was filed after 30th September 2025, such delay shall now be deemed to have been condoned.
The concerned Principal Commissioner of Income-tax (PCIT) or Commissioner of Income-tax (CIT) has been authorized to reconsider such applications on merits.
Time Limit for Disposal
The jurisdictional PCIT/CIT has been directed to dispose of all such applications and pass appropriate orders on or before 31st December 2026.
This provides certainty to charitable institutions awaiting renewal of their 80G approval.
Relief is Procedural, Not Automatic Approval
One important aspect deserves attention.
The circular merely condones the delay in filing the application. It does not grant automatic approval under Section 80G.
Every application will still be examined on its merits, and approval will be granted only if all statutory conditions are satisfied.
Thus, institutions should ensure that all compliances relating to registration, activities, maintenance of accounts, and other legal requirements are duly fulfilled.
Practical Significance
This circular will benefit a large number of charitable organizations that inadvertently missed the filing deadline.
Without this relief, such institutions could have faced several practical difficulties:
Donors may hesitate to contribute if 80G approval lapses.
Existing philanthropic projects could suffer due to reduced funding.
Fresh application procedures may become more cumbersome.
Genuine charitable work could be adversely affected due to a mere procedural lapse.
CBDT has rightly adopted a pragmatic approach by distinguishing between intentional non-compliance and genuine hardship.
A Welcome Step
Tax administration should facilitate voluntary compliance rather than punish genuine mistakes. Procedural defaults should not overshadow substantive charitable work.
CBDT’s Circular No. 06/2026 reflects this philosophy by balancing legal compliance with practical realities. It reinforces the principle that where no revenue loss is involved and the delay is bona fide, justice should prevail over technicalities.
Charitable institutions that have filed Form No. 10AB during the condoned period should closely follow up with their jurisdictional Commissioner to ensure timely disposal of their applications before 31st December 2026.
The circular is a welcome relief and another example of taxpayer-friendly administration by the CBDT.
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Key Takeaways at a Glance
Applicable to: Renewal applications under Section 80G(5).
Original due date: 30 September 2025.
Condoned filing period: 1 October 2025 to 31 March 2026.
Already rejected applications: Eligible for reconsideration if rejected only due to delay.
Order to be passed by: 31 December 2026.
Important: Delay is condoned, but approval is not automatic; applications will still be examined on merits.
This relief will undoubtedly bring much-needed comfort to thousands of genuine charitable trusts and institutions across the country.
The copy of the Circular is as under:
