Belated Filing of Application for Registration of a Charitable & Religious Trust

The Income Tax Act, 1961 allows charitable and religious trusts to apply for belated registration under Section 12AB, even if they miss the initial deadline. Below are the key provisions, conditions, and procedures for belated applications:

1. Legal Provisions for Belated Registration

• Section 12AB(1)(ac): Trusts can apply for re-registrationat least 6 months before expiry of their existing registration.
• Budget 2025 Amendment: The Commissioner of Income Tax (Exemption)may condone delays in filing if the application is submitted after the due date.

2. Conditions for Belated Application

✅ Reasonable Cause: The trust must provide a valid reason for the delay (e.g., administrative issues, lack of awareness).

✅ Genuine Activities: The trust must demonstrate that it is actively engaged in charitable/religious work.

✅ No Prior Cancellation: The trust should not have had its registration cancelled earlier for non-compliance.

3. Procedure for Belated Registration

1. File Form 10A/10AB(as applicable) on the Income Tax Portal.
2. Submit Supporting Documents:
   • Trust deed
   • Audited financial statements (if operational)
   • Explanation for delay
3. CIT (Exemption) Review:
   • The Commissioner may approve, reject, or seek clarifications.
   • If approved, registration is granted retrospectivelyfrom the date of application.

4. Consequences of Belated Filing

⚠ Loss of Exemption: If registration is delayed, the trust cannot claim tax exemption for the period before approval.

⚠ Penalties: No direct penalty, but donations may not qualify for 80G deductions during the gap period.

5. Budget 2025 Relaxations

• Extension of Deadline: The last date for belated applications was extended to 30 September 2024for trusts that missed earlier deadlines.
• Simplified Process: The Finance Act 2025removed the requirement to reject applications for minor errors (e.g., incomplete forms).

Key Takeaways

• Belated applications are allowedbut may lead to a temporary loss of tax benefits.
• Trusts must justify the delayand prove genuine charitable activities.
• Post-2025, minor filing errors no longer lead to rejection