Form 10AB Condonation request for Section 12A is now available for filing on the e-filing portal pursuant to the Finance Act (No. 2), 2024. Refer to proviso to clause (ac) of Section 12A(1) of the Income Tax Act.
1. Background
- Section 12A of the Income Tax Act deals with the conditions to claim exemption under Sections 11 and 12 by charitable trusts, religious trusts, and institutions.
- Form 10AB is the form used for applying for registration or renewal under Section 12A, Section 10(23C), etc.
Earlier, if a trust or institution missed the due date or made mistakes while applying for registration under Form 10AB, there was no formal way to file a condonation request (i.e., a request to forgive the delay/mistake).
2. What has changed now (April 2025 update)?
- Now, the Income Tax e-filing portal has provided the facility to file condonation requests for Form 10AB.
- This change has been made as per the Finance Act (No. 2) of 2024.
- Specifically, this refers to the proviso to clause (ac) of Section 12A(1) of the Income Tax Act, which now empowers the Principal Commissioner/Commissioner of Income Tax (Exemptions) to accept late applications if there is a genuine reason for the delay.
3. Key Points About This New Facility
Particulars | Details |
|---|---|
Form Name | Form 10AB |
Purpose | Registration/Renewal under Section 12A (for exemption) |
New Facility | Filing Condonation Requests for delays/errors |
Applicable Law | Proviso to clause (ac) of Section 12A(1) of the Income Tax Act |
Effective From | 17-April-2025 |
Where to File | Income Tax Department's e-filing portal |
Authority who will decide | Principal Commissioner or Commissioner of Income Tax (Exemptions) |
4. Who should use this facility?
- Trusts, NGOs, religious institutions who failed to file Form 10AB on time.
- Trusts whose application got defective and they need to request condonation.
- Institutions who want to retain tax exemption benefits under Sections 11 and 12.
5. Example (to make it even clearer)
Suppose:
- A Charitable Trust was supposed to file Form 10AB by 30 June 2024, but they filed it late on 15 July 2024.
- Earlier, the Income Tax Department could reject the application simply for being late.
- Now, the Trust can submit a condonation request explaining the reason for delay (e.g., medical emergency, technical issue, or any reasonable cause).
- If the Commissioner is satisfied, the Trust's registration will be granted or renewed.
6. Important Note
- Condonation is not automatic. You must submit a proper application with reasons and supporting documents if needed.
- The authorities have discretion whether to allow or reject the condonation request.