CBDT Circular 06/2026: Condonation of Delay in Filing Form 10AB for Section 80G Renewal (Applications Filed October 2025 to March 2026)

Quick Summary: CBDT Circular 06/2026 in Five Points

What: CBDT Circular No. 06/2026 dated July 2, 2026 (F. No. 300176/3/2026-ITA-I) condones the delay in electronic filing of Form No. 10AB for regular approval under Section 80G(5) of the Income-tax Act, 1961.
Who is covered: Charitable trusts, institutions, funds and NGOs whose Form 10AB application for 80G approval was filed electronically between October 1, 2025 and March 31, 2026, after missing the prescribed due date of September 30, 2025.
Extra relief: Applications already rejected solely because they were late in that window are treated as condoned and must be reconsidered on merits.
Deadline for the department: The jurisdictional Principal Commissioner or Commissioner of Income-tax must dispose of these applications on or before December 31, 2026.
Important caveat: Condonation of delay does not grant automatic approval under Section 80G. Each application is decided on merits.

What CBDT Circular 06/2026 Actually Changed

On July 2, 2026, the Central Board of Direct Taxes issued Circular No. 06/2026 granting a one-time condonation of delay in filing Form No. 10AB, the form used to seek regular (final) approval under Section 80G(5) of the Income-tax Act, 1961. For hundreds of charitable trusts and institutions, this is the difference between keeping their 80G status alive and losing the ability to issue donation receipts that give donors a tax deduction.

The trigger is a familiar one. Under the amended registration regime, an institution holding provisional or existing 80G approval must apply for regular approval in Form 10AB at least six months before its current approval expires. For a large cohort of trusts whose approval was expiring on March 31, 2026, that six-month lead meant the application was due by September 30, 2025. Many missed it, either because of genuine hardship, portal issues, or simple oversight, and filed only later in the year. Under a strict reading, a late Form 10AB can be rejected outright, and a rejection puts the institution’s entire 80G eligibility at risk.

Circular 06/2026 removes that risk for the defined window. Using its power to condone delay under Section 119(2)(b) of the Income-tax Act, 1961 (read with the transitional Section 536(2) of the Income-tax Act, 2025), CBDT has directed that Form 10AB applications for 80G approval filed between October 1, 2025 and March 31, 2026 shall be treated as filed in time.

Why This Matters: The Cost of a Rejected Form 10AB

Section 80G approval is what lets a donor claim a deduction (generally 50 percent of the donation, subject to the qualifying-amount ceiling) for money given to an approved institution. If a trust loses its 80G status, three things happen almost immediately:

Donors walk away. Corporate and HNI donors condition their giving on a valid 80G certificate. No approval means no deduction, and fundraising dries up.
CSR eligibility is disturbed. Companies routing CSR spend to implementing agencies rely on the agency holding valid registrations. A lapsed 80G weakens the compliance trail.
Re-application is slow and uncertain. A fresh cycle of provisional plus regular approval can take months, during which the institution operates without the certificate donors expect.

By converting a fatal late filing into a condoned one, the circular protects the institution’s continuity of approval instead of forcing it back to square one.

The Old Deadline vs the New Relief

Point	Position Before Circular 06/2026	Position After Circular 06/2026
Prescribed due date for Form 10AB (approval expiring 31.03.2026)	September 30, 2025 (six months before expiry)	Unchanged as the statutory due date
Application filed Oct 1, 2025 to Mar 31, 2026	Late, liable to be rejected	Delay condoned, treated as in time
Application already rejected only for being late	Rejection stands, 80G at risk	Treated as condoned, reconsidered on merits
Outcome guaranteed?	Not applicable	No, approval still decided on merits
Department to decide by	No fixed date	December 31, 2026

Period-Aware Reading: Section 80G(5) of the 1961 Act and Section 133 of the 2025 Act

This is where practitioners need to be precise. The Income-tax Act, 2025 is in force from April 1, 2026 (Tax Year 2026-27 onwards), while the Income-tax Act, 1961 continues to govern FY 2025-26 and earlier years and pending matters. Circular 06/2026 is drafted to work across that transition:

The approval sought is under the first proviso to Section 80G(5) of the Income-tax Act, 1961 for the period the 1961 Act governs. The successor provision for donations to approved institutions under the Income-tax Act, 2025 is Section 133 (the circular refers to Section 133(1)(b) of the 2025 Act as the corresponding provision for periods it governs).
The condonation power is exercised under Section 119(2)(b) of the 1961 Act, read with the saving and transitional clause Section 536(2) of the Income-tax Act, 2025, so that the relief remains valid even as the new Act takes over.

In plain terms: the institution’s approval application and this condonation sit under the 1961 Act framework because they relate to approvals expiring on March 31, 2026, but the circular expressly preserves their validity into the 2025 Act regime through Section 536(2). If you are drafting a covering letter or a submission to the Commissioner, cite the 1961 Act provisions for the substantive approval and note the 2025 Act successor, rather than treating either Act as the sole current law.

Compliance Checklist: What Trustees and Their CAs Should Do Now

Pull the acknowledgement. Confirm the date on which your Form 10AB for 80G approval was actually filed on the e-filing portal. If it falls between October 1, 2025 and March 31, 2026, you are within the condonation window.
Check the status of the application. Is it pending, or was it rejected? If it was rejected only on the ground of delay, the circular says it must be reopened and reconsidered on merits, so follow up with the jurisdictional office in writing.
Prepare the merits file. Condonation cures the delay, not the substance. Keep the trust deed, prior registration and approval orders, activity reports, audited accounts and Form 10B/10BB audit report ready, because the Commissioner will now decide the application on its merits.
Track the December 31, 2026 timeline. The department must dispose of the application by year end. Diarise it and chase for the order well before December 2026.
Do not stop issuing receipts recklessly, but manage donor communication. Where approval is under active reconsideration, keep donors informed and retain documentary support so that deductions are not disputed later.
Fix your calendar for the next cycle. The lesson is the six-month lead. For any approval expiring in a future year, file Form 10AB at least six months before expiry to avoid needing a condonation at all.

Frequently Asked Questions

Does Circular 06/2026 mean my trust automatically gets 80G approval?

No. The circular only condones the delay in filing Form 10AB. The Principal Commissioner or Commissioner still examines the application on merits and can approve or reject it based on the genuineness of activities and compliance history. The relief removes the delay objection, not the substantive review.

My Form 10AB was rejected in early 2026 only because it was late. Is there anything I can do?

Yes. Circular 06/2026 states that applications rejected solely for delay during the covered window are treated as condoned and are to be reconsidered on merits. Write to the jurisdictional office referencing the circular and request that your application be restored and decided afresh before December 31, 2026.

What if I filed after March 31, 2026?

The circular covers applications filed electronically up to March 31, 2026 for the relevant cohort. Filings outside that window are not covered by this circular. A separate condonation request under Section 119(2)(b) may be needed, and you should take specific advice on the facts.

Which sections apply, the 1961 Act or the 2025 Act?

Both, by period. The substantive approval is under Section 80G(5) of the Income-tax Act, 1961 for periods that Act governs, with Section 133 as its successor under the Income-tax Act, 2025. The condonation is under Section 119(2)(b) of the 1961 Act, read with Section 536(2) of the 2025 Act, which preserves its validity across the transition.

Is the six-month advance filing rule for Form 10AB changed by this circular?

No. The requirement to file Form 10AB at least six months before the existing approval expires remains the governing rule. Circular 06/2026 is a one-time relief for a specific past window, not a permanent extension of the deadline.

The Bottom Line

Circular 06/2026 is targeted, time-bound relief. If your trust or NGO filed Form 10AB for 80G renewal late but within the October 2025 to March 2026 window, the delay is forgiven and your application lives to be decided on merits by December 31, 2026. If it was rejected only for lateness, push to have it reopened. The one action item that outlasts this circular is discipline on the six-month lead time, so you never depend on a condonation again.

Sources referenced: CBDT Circular No. 06/2026 dated July 2, 2026 (F. No. 300176/3/2026-ITA-I); Section 80G(5), Section 119(2)(b), Income-tax Act, 1961; Section 133 and Section 536(2), Income-tax Act, 2025. Institutions should verify the exact text against the official circular on incometaxindia.gov.in before acting.

Get Expert Guidance on Your 80G and Trust Compliance

If your charitable trust, society or Section 8 company is navigating an 80G renewal, a delayed Form 10AB, or a rejection that needs to be reopened under Circular 06/2026, get it reviewed before the December 31, 2026 disposal deadline. Schedule a quick call with Tax Update India to map out your submission and protect your donors’ deductions.

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