I-T Department allows delayed Form 10AB filing for trusts; what it means for Section 80G tax deductions

The Income Tax Department has granted relief to charitable and religious trusts by allowing the condonation of delay in filing Form 10AB for fresh approval under Section 80G of the Income-tax Act. The move enables eligible trusts that missed the prescribed deadline to seek renewal of their 80G registration, ensuring that taxpayers can continue claiming tax deductions on donations made to these institutions.

The relief comes through a circular issued on July 2, 2026, after several charitable organisations represented that they could not file Form 10AB within the prescribed timeline due to genuine reasons. The provisions relating to Section 80G are now covered under Section 133 of the Income Tax Act, 2025.

Why was the relief granted?

Under the existing rules, charitable trusts holding valid Section 80G approval must apply for renewal by filing Form 10AB at least six months before the approval expires.

For many trusts whose 80G approval was due to expire on March 31, 2026, the deadline for filing Form 10AB was September 30, 2025. However, several organisations failed to meet this deadline, resulting in their applications being rejected solely because of the delay.

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Following representations from affected trusts, the Central Board of Direct Taxes (CBDT) examined the issue and decided to condone the delay. The circular authorises the jurisdictional Principal Commissioner or Commissioner of Income Tax to process such delayed applications and pass orders by December 31, 2026.

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How Section 80G benefits taxpayers

Section 80G allows taxpayers to claim deductions on donations made to specified charitable institutions and relief funds, thereby reducing their taxable income. However, this deduction is available only under the old tax regime and only if the recipient organisation has a valid 80G registration.

The deduction depends on the type of institution receiving the donation. Donations to funds such as the Prime Minister's National Relief Fund (PMNRF), Prime Minister's CARES Fund and the National Defence Fund qualify for a 100% deduction without any qualifying limit.

Donations to institutions such as the Jawaharlal Nehru Memorial Fund, Prime Minister's Drought Relief Fund and Indira Gandhi Memorial Trust qualify for a 50% deduction without any qualifying limit.

Certain donations to local authorities or government institutions qualify for a 100% deduction subject to a qualifying limit, while contributions to registered NGOs, public charitable trusts and notified places of worship are generally eligible for a 50% deduction, subject to an overall ceiling of 10% of the taxpayer's adjusted gross total income.

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Conditions for claiming the deduction

Taxpayers must satisfy certain conditions to claim deductions under Section 80G. Cash donations exceeding ₹2,000 are not eligible, and payments should be made through banking channels such as cheque, demand draft or digital modes.

Donations made in kind, including food, clothing or other materials, do not qualify for tax benefits.

Donors should also obtain a valid receipt containing the name of the charitable institution, the donor's name, the donation amount and the trust's valid 80G registration number. In addition, the donee institution is required to issue Form 10BE, which serves as the donation certificate for claiming the deduction while filing the Income Tax Return (ITR). Taxpayers can also verify the institution's registration through the Income Tax Department's Exempted Institutions Utility.

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Compliance requirements for trusts

Charitable and religious trusts are governed by Sections 11 to 13 of the Income-tax Act, which provide tax exemptions for income applied towards approved charitable or religious purposes. To claim these exemptions, trusts must obtain registration under Section 12AB and comply with conditions relating to maintenance of books of account, audit requirements and timely filing of income tax returns.

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Unlike the earlier system under which approvals were largely perpetual, most Section 12AB and Section 80G registrations are now valid for five years and require periodic renewal through Form 10AB.

The latest CBDT circular provides a one-time opportunity for eligible trusts that missed the September 2025 deadline to regularise their registration. Once approved, taxpayers donating to these organisations will continue to be eligible for tax deductions under Section 80G, subject to the provisions of the Income-tax Act.

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