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Circular No. 7/2018 was issued by the Central Board of Direct Taxes on 20 December 2018. Its subject is ____________________ __.
This is a condonation. It lets an authority admit something filed late; it does not make the late filing timely, and it usually carries conditions and an outer limit of its own.
Authorises Commissioners of Income-tax to admit belated applications in Form No. 9A and Form No. 10 for assessment year 2016-17 where those forms were filed after the time allowed, and to condone the delay under section 119(2)(b). It supersedes the Board's earlier circular and instruction on the point. Before condoning, the Commissioner must be satisfied that reasonable cause prevented timely filing, and in a Form No. 10 case must additionally be satisfied that the amount accumulated or set apart has been invested or deposited in one or more of the modes specified in section 11(5).
Representations were received that Form No. 9A and Form No. 10 could not be filed within time for assessment year 2016-17, that being the first year these forms had to be filed electronically.
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F.No.197/55/2018-ITA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
CIRCULAR No. ?- / 2018
North Block, New Delhi
'X'/ December , 2018
Sub: Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form no.
10 and Form No. 9A for AY 2016-17
Under the provisions of section 11 of the Income-tax Act, 1961 ( hereafter Act') the primary
condition for grant of exemption to trust or institution in respect of income derived from
property held under such trust is that the income derived from property held under trust should
be applied for the charitable purposes in India. Where such income cannot be applied during the
previous year, it has to be accumulated and applied for such purposes in accordance with
various conditions provided in the section.
2. The Finance Act, 2015 amended section 11 and section 13 of the Act with effect from
01.04.2016 (A.Y. 2016-17). Consequently, Income-tax Rules, 1962 ( hereafter 'Rules') were also
amended vide the Income-tax (1st Amendment) Rules, 2016. As per the amended provisions of
the Act read with rule 17 of the Rules, while 15% of the income can be accumulated indefinitely
by the trust .or institution, 85 % of income can .only. be accumulated for a period not exceeding 5
years subject to the conditions, inter alia, that such person submits the prescribed Form No. 10
electronically to the Assessing Officer within the due date specified under section 139(1) of the
Act.
3. Further, where the income from the property held under trust and applied to charitable or
religious purposes falls short of 85% of the income derived during the previous year for the
reason that the income has not been received during that year or any other reason, then on
exercise of the option by submitting in Form No.9A electronically by the trust/institution on or
before the due date of furnishing the return of income, such income shall be deemed to have
been applied for charitable or religious purpose .
...
1
4. Representations have been received by the Board/ field authorities stating that the Form
No. 9A and Form No.10 could not be filed in the specified time for AY 2016-17, which was the
first year of e-filing of these forms. It has been requested that the delay in filing of Form No. 9A
and Form NO.10for AY 2016-17 may be condoned under section 119(2) (b) of the Act.
5. Accordingly, in supersession of earlier Circular/Instruction issued in this regard, with a
view to expedite the disposal of applications filed by trusts for condoning the delay and in
exercise of the powers conferred under section 119(2)(b) of the Act, the Central Board of Direct
Taxes hereby authorizes the Commissioners of Income-tax, to admit belated applications in Form
No. 9A and Form No.10 in respect of AY 2016-17 where such Form No. 9A and Form No.10 are
filed after the expiry of the time allowed under the relevant provisions of the Act.
6. The Commissioners will, whil-e -entertaining such belated applications in Form No. 9A and
Form No.10, satisfy themselves that the assessee was prevented by reasonable cause from filing
of applications in Form No. 9A and Form No.10 within the stipulated time. Further, in respect of
Form No. 10 the Commissioners shall also satisfy themselves that the amount accumulated or set
apart has been invested or deposited in anyone or more of the forms or modes specified in subsection (5) of section 11 of the Act.
Under Secretary to the Government of India
Copy to:-
1. PS to FM/OSD to FM/ PS to MoS (R) / OSD to MoS (R)
2. PPS to Secretary (Revenue )
3. The Chairperson, Members and all other officers in CBDT of the rank of Under Secretary
and above.
4. All Pr. Chief Commissioners/ Pro Director General of Income-tax/ Chief Commissioner of
Income-tax (Exemptions) - with a request to circulate amongst all officers in their
regions / charges.
5. CIT(M&TP), CBDT and Official spokesperson of CBDT.
6. The Additional Director General (PR & PP), New Delhi.
7. !TCC Division of CBDT
8. Data Base Cell- for placing it on www.irsofficersonline.gov.in
9. ADG (S) -4/ Web manager for placing it on www.incometaxindia.gov.in
10. The Guard File
When exemption under section 11 has been withdrawn for assessment year 2016-17 because Form No. 9A or Form No. 10 went in after the due date, and the trust applies to the Commissioner to condone the delay.
Forms it names. Form No. 10, Form No. 10FOR, Form No. 9A
Rules it names. Rule 17 of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
Source: the Income Tax Department’s own published text — its page for this instrument.