Renewal of registration u/s.12A and approval u/s. 80G - Apply of Income tax Act, 1961 and Income tax Rules 2026 (New Forms)

[PRIYAM KHAMBHATA]

Respected Sir

My one of the client is Charitable Trust, who has registered u/s. 12A and also approved u/s.80G of the Income tax Act, 1961 and also received registration approval order u/s. 12A and 80G of the Income tax Act, 1961 in Form 10AC for the AY 2022-23 to 2026-27 in the year 2021,

All Charitable Trust/ Institution had to apply renewal of such registration u/s. 12A and approval u/s.80G, in Form 10AB, by 30.09.2025. however, my client has bonafide impression that such renewal would be applied after 31.03.2026, therefore he could not applied for renewal of registration u/s. 12A and approval u/s.80G of the Income tax Act, 1961

Now, my query is that what would we do to get Renewal of registration u/s. 12A and approval u/s.80G from AY 2027-28.

Do we apply in newly Form 105, as per Income tax Rules 2026 or Old Income Tax Rules in Form No. 10AB

Please guide me for further action to be taken for Renewal of Registration,

[YAGAY andSUN]

The trust was duly granted registration under section 12A and approval under section 80G of the Income-tax Act, 1961, vide Form 10AC for the block period A.Y. 2022-23 to A.Y. 2026-27. As per the statutory framework then in force, an application for re-validation/renewal in Form No. 10AB was required to be furnished within the prescribed time limit, i.e., on or before 30.09.2025. Admittedly, the assessee failed to comply with the said requirement within time on account of a bona fide but erroneous understanding of law.

In the absence of a valid application for renewal within the prescribed period, the existing registration/approval shall cease to be effective upon expiry of its validity period, i.e., after A.Y. 2026-27. Consequently, the trust cannot claim continuity of exemption/approval as a "renewal" in the strict sense.

Accordingly, the appropriate legal course is not to seek renewal under the erstwhile provisions by filing belated Form No. 10AB, unless a specific condonation mechanism is notified and invoked by the competent authority under section 119(2)(b) or through any CBDT circular extending the due date. In the absence of such condonation/extension, the assessee is required to apply afresh for registration and approval as a new applicant.

In light of the amendments brought into force by the Income-tax Rules, 2026, the application shall be governed by the prevailing procedural law at the time of filing. Therefore, the trust is required to submit a fresh application in the newly prescribed Form No. 10A/10AB or such substituted form (referred to as Form No. 10AC/10AD/10AE or Form 105, as notified) in accordance with the amended Rules applicable for the relevant assessment year.

Upon such fresh application, the registration/approval, if granted, shall operate prospectively from the assessment year immediately following the financial year in which the application is made, subject to satisfaction of conditions prescribed under sections 12AB and 80G.

Without prejudice, it is advisable to examine whether any condonation of delay can be sought by way of a petition before the Central Board of Direct Taxes under section 119(2)(b), substantiating the bona fide reasons for delay. If such condonation is granted, the application in Form No. 10AB may be entertained; otherwise, only a fresh registration route under the amended Rules would be legally sustainable.

[PRIYAM KHAMBHATA]

Respected Sir

Thank You so much for your guidance

Regards

[DEV KUMAR KOTHARI]

As per my understanding by amendment, procedural requirements for making application and granting registration and approval were to be avoided as per object of amendment as appears from speech of FM.

IN a FAQ no. 7 relating to trusts it is interlaia stated as follows:

FAQ.7: Rationalization of the provisions relating to Charitable Trusts and Institutions

Q.1. What are the present provisions regarding the validity of registration of trust?

Ans. Under the current provisions of section 12AB of the Income Tax Act, 1961, registration shall be valid for a period of 5 years or 3 years (where activities of the trust or institution have not commenced).

Q.2. What amendment has been carried out in respect of registration of trusts?

Ans. The period of validity of registration of trust or institution with income below Rs 5 Crore has been increased from 5 years to 10 years in certain cases.

Therefore, I understand that the extension is statutorily granted.

However, an application can be made to get certificates endorsed or to get confirmatory letter from concerned CIT(E)

AI Summary

Charitable trust registration renewal turns on missed filing deadlines, condonation possibilities, and fresh application under amended rules. Renewal of section 12A registration and section 80G approval for a charitable trust was discussed in the context of a missed deadline for filing the prescribed renewal application in Form No. 10AB. The commentary notes that, in the absence of a valid application within time, the existing registration and approval would cease on expiry of the validity period and continuity cannot be claimed as a renewal in the strict sense. Unless condonation is available under section 119(2)(b) or through a CBDT circular, the proper course would be to apply afresh under the amended Rules and the substituted prescribed forms.