Form 10AB with condonation option now available on e-filing portal

 

1. Introduction:

The Income Tax Department has enabled the filing of Form 10AB condonation requests on the e-filing portal.

2. Finance Act 2024:

This update follows the amendments introduced in the Finance Act (No. 2), 2024, and pertains specifically to Section 12A(1)(ac) of the Income Tax Act.

3. Background:

Section 12A of the Income Tax Act deals with the registration of trusts and institutions for claiming exemption under Sections 11 and 12. Institutions that do not hold a valid registration under Section 12A are not eligible for tax exemption on their income.

The e-filing portal now supports online submission of Form 10AB for condonation of delay.

4. Who has benefited?:

Charitable trusts, religious institutions, and other non-profits that failed to file Form 10A on time.

5. Action to be taken:

File Form 10AB with appropriate reasoning for delay to seek condonation from the tax authorities.