CBDT Circular 06/2026: Late Form 10AB Filing Now Condoned for 80G Trusts
CBDT Circular 06/2026 (2 July 2026) now condones late Form 10AB filings for charitable trusts seeking final 80G approval, provided applications were filed electronically between 1 October 2025 and 31 March 2026. The delay is waived; applications proceed on merits by 31 December 2026.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: Income-tax Act, 1961, Section 80G))(5) read with Section 119(2)(b); Income-tax Act, 2025, Section 536(2) — Effective: 2 July 2026. Source: CBDT Circular No. 06/2026 (F. No. 300176/3/2026-ITA-I), incometaxindia.gov.in. Last reviewed by CA Harun Raaj: January 2026.
The Central Board of Direct Taxes has issued Circular No. 06/2026, dated 2 July 2026, granting relief to charitable trusts and institutions that filed Form 10AB late when seeking final approval under Section 80G(5) of the Income-tax Act, 1961. If your organisation applied for 80G approval after the prescribed six-month window but within the specified period, the delay can now be condoned under Section 119(2)(b).
The Relief at a Glance
A trust that receives provisional 80G approval must apply for regular approval on Form 10AB within the timeline set by the first proviso to Section 80G(5). The CBDT has recognised that genuine circumstances may cause delays and has used its powers under Section 119(2)(b) to condone the delay for Form 10AB applications filed electronically between 1 October 2025 and 31 March 2026. This means applications in that window will not be rejected solely because they missed the prescribed six-month period.
Key point: Condonation of delay removes the timing objection, but the jurisdictional CIT(E) will still examine each application on merits — approval is not automatic.
Who Qualifies
The condonation applies where the Form 10AB application for Section 80G(5) approval was filed electronically between 1 October 2025 and 31 March 2026. Your trust is covered if:
- It holds provisional 80G approval and was required to file Form 10AB within six months.
- The Form 10AB was filed late but within the 1 October 2025 to 31 March 2026 window.
- The application was submitted electronically.
Applications outside this window remain subject to normal condonation procedures and require a separate application under Section 119(2)(b).
Timeline and Next Steps
Your jurisdictional Principal Commissioner or Commissioner of Income-tax will dispose of the application on merits, examining the trust's charitable objects, genuineness of activities, compliance with Section 13, and mode of investment under Section 11(5). An order will be passed on or before 31 December 2026.
What Condonation Does — and Doesn't
Condonation removes the delay objection only. It does not:
- Guarantee automatic approval of the Form 10AB application.
- Override the CIT(E)'s power to examine and reject the application on substantive grounds.
- Provide any retrospective 80G benefit for the period between provisional and regular approval.
Each application is assessed on its merits. Approval depends on the trust satisfying the conditions under Section 80G(5) and Section 13 of the Income-tax Act, 1961.
Why This Matters for Your Trust
Without valid 80G approval, the consequences are material:
- Donors lose their deduction under Section 80G(2), reducing incentive for contributions.
- Your organisation cannot issue Form 10BE certificates (annual return) or file Form 10BD (donor statement) meaningfully.
- If provisional approval lapses without conversion to regular approval, the trust risks Section 115TD exposure — accreted income (25% of book income) becomes taxable where re-registration fails.
- Lapsed status can trigger scrutiny assessments and compliance notices.
Trusts in the eligible window (1 October 2025 to 31 March 2026) should confirm their Form 10AB is pending approval and respond promptly to any notice from the CIT(E) to avoid further delay.
Action Items
- Check your Form 10AB status with the jurisdictional CIT(E) office or via the e-filing portal.
- If your Form 10AB is pending, ensure all supporting documents are current and complete; the CIT(E) may request them before passing an order.
- Track the 31 December 2026 deadline — an order must be passed by then under this circular.
- Plan your Form 10BD filing (due 31 May annually) only after 80G approval is confirmed.
I'm CA Harun Raaj, Visakhapatnam. If your trust is affected by this circular or you're uncertain whether your Form 10AB falls within the condonation window, reach out — I can help clarify your position and ensure your application proceeds smoothly.
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See Also
Frequently Asked Questions
Does CBDT Circular 06/2026 guarantee my trust will get 80G approval if I filed Form 10AB late?+
No. The circular condones the delay only, removing the timing objection. The jurisdictional CIT(E) still examines your application on merits — examining your charitable objects, genuineness of activities, Section 13 compliance, and investment mode under Section 11(5). Approval or rejection depends on that substantive examination.
What if my trust filed Form 10AB outside the 1 October 2025 to 31 March 2026 window?+
Circular 06/2026 does not cover you. You may apply separately for condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961, but this requires a separate request and is not automatic. Consult a qualified professional to assess your chances.
Can I file my Form 10BD (donor statement) now while waiting for the CIT(E) order on Form 10AB?+
No. Form 10BD is an annual return of donations received and can only be filed meaningfully once your trust holds valid regular 80G approval (after the CIT(E) passes an order). File Form 10BD in the year your Form 10AB approval is granted, with the approval details included.
What happens if the CIT(E) does not pass an order on my Form 10AB by 31 December 2026?+
The circular states the order must be passed on or before 31 December 2026. If this deadline is missed, your trust should escalate the matter to the jurisdictional Principal Commissioner or seek legal remedies. Track your case status regularly.
Does condonation under Circular 06/2026 give my trust any retrospective 80G benefit?+
No. Condonation does not backdate approval or provide any tax relief for the period between provisional and regular approval. 80G benefits are only available from the date regular approval is granted by the CIT(E) under Section 80G(5).
If my Form 10AB is rejected on merits after condonation, can I appeal?+
Yes. Rejection on merits is appealable under the normal Income-tax Act procedures — you can file an appeal before the Commissioner (Appeals) within 30 days of the order. Condonation of delay does not affect your appellate rights.
What is the risk if my provisional 80G approval lapses without conversion to regular approval?+
Your trust may face Section 115TD exposure — accreted income (25% of book income) becomes taxable where re-registration fails. Additionally, donors cannot claim deductions under Section 80G, Form 10BE cannot be issued, and compliance notices may follow. This is why converting provisional to regular approval is critical.
Do I need to file Form 10AB again if I already filed it late within the condonation window?+
No. If your Form 10AB was filed electronically between 1 October 2025 and 31 March 2026, it is already covered. The CIT(E) will examine the application you submitted; do not file it again unless asked.
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