July Income Tax Update

                                                  

                                                                                                      - CA Chaitanya Kumar

Income tax Update:

CBDT Circular No. 06/2026: Relief for Delay in Filing Form 10AB for Renewal of Section 80G Approval

The Central Board of Direct Taxes (CBDT) has issued Circular No. 06/2026 granting relief to charitable trusts and institutions that could not file Form No. 10AB within the prescribed time for renewal of approval under Section 80G(5) of the Income-tax Act.

Background

Institutions enjoying approval under Section 80G are required to apply for renewal by filing Form No. 10AB electronically at least six months before the expiry of the existing approval. For approvals expiring on 31 March 2026, the due date for filing Form 10AB was 30 September 2025.

CBDT received representations from several trusts and institutions stating that the delay in filing was due to bona fide reasons, resulting in genuine hardship, particularly affecting their ability to receive tax-deductible donations.

Key Relief Granted

Exercising its powers under Section 119(2)(b) of the Income-tax Act, 1961 (read with the corresponding provisions of the Income Tax Act, 2025), CBDT has condoned the delay in cases where Form No. 10AB was filed electronically between 1 October 2025 and 31 March 2026.

The jurisdictional Principal Commissioner of Income-tax (PCIT) or Commissioner of Income-tax (CIT) has been directed to examine such applications on their merits and pass appropriate orders on or before 31 December 2026.

Applications Already Rejected

The Circular also provides relief where applications filed during the above period were rejected solely on the ground of delayed filing. Such delays shall now be deemed to have been condoned, and the applications will be reconsidered on their merits by the jurisdictional tax authorities.

Important Clarification

The Circular makes it clear that the condonation of delay does not automatically entitle an institution to approval under Section 80G. The approval will continue to be subject to satisfaction of the prescribed conditions and examination by the competent authority.

Practical Takeaway

This is a welcome measure for charitable institutions that missed the statutory deadline due to genuine reasons. Eligible trusts and institutions that filed Form 10AB during the condoned period can expect their applications to be processed on merits, thereby safeguarding the continuity of their Section 80G approval and preserving donor confidence.



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