The income tax (I-T) department has permitted ‘condonation of delay’ for charitable trusts to file Form 10AB for seeking fresh approval under Section 80G of the I-T Act.
This will allow taxpayers to claim deductions under Section 80G for the donations made to these charitable institutions. Provisions under Section 80G are covered under Section 133 of the new Income Tax Act, 2025.
For the context, the deadline for some charitable trusts to apply for the 80G approval expired on 30 September 2025. After this, all the applications made by trusts were rejected solely on the ground of delay. By releasing this circular dated 2 July 2026, the I-T department has provided a much-needed relief to such charities.
How does the 80G deduction work?
Taxpayers can donate to any charitable trust, but they can claim a deduction only for donations made to trusts which have a valid 80G approval.
After receiving the donation, a trust typically issues a certificate to the donor acknowledging the receipt. This certificate is used to claim deductions under Section 80G. In other words, a taxpayer can claim an 80G deduction only after the trust has issued this certificate.
And when a trust already has a valid 80G approval for five years, it has to apply for renewal in Form 10AB six months before the approval expires.
Why was the condonation granted?
There are several funds and trusts whose section 80G approvals were set to expire on 31 March 2026 and they were supposed to seek fresh approval six months before the expiry -- i.e., on or before 30 September 2025.
Some of these charities made representations to the Central Board of Direct Taxes (CBDT), informing that the delay in furnishing the application took place because of bona fide reasons and other circumstances.
After examining the matter, the CBDT decided to condone the delay in filling form number 10AB.
Now, the jurisdictional principal commission/commissioner of income tax is authorised to dispose of such applications and pass an order before 31 December 2026.
Perpetual to limited period approvals
Chirag Chauhan, founder of CA Chauhan & Company, a Mumbai-based chartered accountants firm, explained that these registrations used to be valid perpetually. In the past few years, however, all trusts were asked to seek approvals every five years. The deadline to seek fresh approval for some of these organisations expired in September last year.
However, a few trusts happened to miss the deadline to apply under Form 10AB. “It is only these trusts which missed the deadline for which this circular has come to rescue,” says Chauhan.
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