Circular No. 11/2022

Circular No. 11 of 2022

What this is

Circular No. 11/2022 was issued by the Central Board of Direct Taxes on 3 June 2022. Its subject is Circular No. 11 of 2022.

This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.

What it does

Rewrites the conditions printed on Form No. 10AC orders already issued to charitable entities, so that they match the Finance Act, 2022 changes. Every Form No. 10AC issued between 1 April 2021 and 3 June 2022 is to be read as if its conditions had been replaced, with effect from 1 April 2022, by the conditions in Annexures A to F, mapped to the section code under which the order was passed. Separately, where technical glitches caused a Form No. 10AC in financial year 2021-22 to be headed 'Order for provisional registration' or 'Order for provisional approval' when it should have said 'Order for registration' or 'Order for approval', that form is to be treated as an order for registration or approval, with the words 'provisional registration' and 'provisionally registered' in the heading and in rows 6 to 10 read without the word 'provisional'. Row 5 of every Form No. 10AC is to be read as 'Unique Registration Number'.

Why it was issued

The Finance Act, 2022 inserted sub-section (4) in section 12AB and substituted the fifteenth proviso to clause (23C) of section 10, giving the Principal Commissioner or Commissioner power to cancel a registration or approval for a 'specified violation', which includes not carrying on activity in accordance with the conditions of registration; the conditions already printed on Form No. 10AC therefore had to be realigned with the amended law.

Who it reaches

Trusts and institutions holding a Form No. 10AC order issued between 1 April 2021 and 3 June 2022
Entities registered or provisionally registered under sub-section (1) of section 12AB or sub-section (1) of section 12AA
Funds, universities, educational institutions and hospitals approved under sub-clauses (iv), (v), (vi) and (via) of clause (23C) of section 10
Institutions approved under sub-section (5) of section 80G
Entities wrongly issued a provisional order on account of a portal glitch

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.10	s.11, s.19
s.12AA	no counterpart recorded
s.12AB	s.332, s.351
s.80G	s.133, s.332, s.354

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

Circular No. 11 of 2022
F. No.370142/4/2021-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(TPL Division)
Dated: 3rd June, 2022
Sub: Clarification regarding Form No 10AC issued till the date of this Circular - reg.
Finance Act, 2022 has inserted sub-section (4) in section 12AB of the Income-tax
Act, 1961 (the Act) allowing the Principal Commissioner or Commissioner of Income-tax to
examine if there is any "specified violation" by the trust or institution registered or
provisionally registered under the relevant clauses of sub-section (1) of section 12AB or subsection (1) of section 12AA. Subsequent to examination by the Principal Commissioner or
Commissioner of Income-tax, an order is required to be passed for either cancellation of the
registration or refusal to cancel the registration. Similar provisions have also been introduced
in clause (23C) of section 10 of the Act by substituting the fifteenth proviso of the said clause
with respect to fund or institution trust or institution or any university or other educational
institution or any hospital or other medical institution referred under sub-clauses (iv), (v),
(vi), (via) of this clause and which have been approved or provisionally approved under the
second proviso to the said clause. These amendments are effective from 1st April, 2022. In
addition to the specified violations referred above, the power of cancellation has also been
granted under sub-rule (5) of rule 17A and sub-rule (5) of rule 2C of the Income-tax Rules,
1962 ( the Rules) to the Principal Commissioner or Commissioner authorised by the Board.
This Circular only relates to cancellation of registration/approval or provisional
registration/approval in the case of "specified violation".
2. The definition of "specified violation" for the purposes of fifteenth proviso to clause
(23C) of section 10 and section 12AB of the Act has been provided in the respective clause
and section. The said definition, inter-alia, includes instances where any activity of the fund
or trust or institution is not being carried out in accordance with all or any of the conditions
subject to which it was approved/ provisionally approved or registered/provisionally
registered.
3. It may be noted that as per the new procedure for approval/registration of charitable
entities, which was notified vide Notification No 19/2021 dated 26.03.2021, the entities
seeking re-registration/ approval or provisional registration/ approval (fresh) are required to
file an application in Form 10A. Further, the order granting registration or provisional
registration or approval or provisional approval is made in Form 10AC subject to the
fulfilment of certain conditions.
4. In view of the amendments made vide Finance Act, 2022, the conditions subject to
which the registration/approval or provisional registration/ provisional approval was granted
to trusts and institutions need to be revised to align the same with the amendments made by
Finance Act, 2022.
5. In view of the above, it is hereby clarified that,-
(i) the conditions contained in Form No. 10AC, issued between 01.04.2021 till the date
of issuance of this Circular, shall be read as if the said conditions had been
substituted with the conditions as provided in the Table 1 with effect from 1st April,
2022;
Table 1
Sl.
No.
Section
Code Section under which order is passed Conditions
1 01 Clause (a) of sub-section (1) of section 12AB As per Annexure A
2 02 Clause (c) of sub-section (1) of section 12AB As per Annexure B
3 03 to 06 Clause (i) of second proviso to clause (23C)
of section 10 As per Annexure C
4 07 to 10 Clause (iii) of second proviso to clause (23C)
of section 10 As per Annexure D
5 11 Clause (i) of second proviso to sub-section
(5) of section 80G As per Annexure E
6 12 Clause (iii) of second proviso to sub-section
(5) of section 80G As per Annexure F
(ii) where due to technical glitches, Form No. 10AC has been issued during FY 2021-
2022 with the heading "Order for provisional registration" or " Order for provisional
approval" instead of "Order for registration" or " Order for approval", then all such
Form No. 10AC shall be considered as an "Order for registration or approval" and, in
such cases where Form No. 10AC has been issued, -
(a) under section code 01 (applications seeking re-registration),-
(i) in the heading and in rows 6, 7, 9 and 10 the words ," provisional
registration" shall be read as "registration";
(ii) in row 8 the word " provisionally registered" shall be read as
"registered";
(b) under section codes 03, 04, 05, 06 or 11 (applications seeking re-approval),-
(i) in the heading and in rows 6, 7, 9 and 10 the words ," provisional
approval" shall be read as "approval";
(ii) in row 8 the word " provisionally approved" shall be read as
"approved";
(iii) row no 5 of Form No. 10AC ( issued for all section codes) shall be read as "Unique
Registration Number" instead of "Provisional Approval/ Approval Number" or "
Provisional Registration/ Registration Number", as the case maybe.

(Neha Sahay)
Under Secretary
TPL Division
Copy to the:
1. PS/ OSD to FM/ PS/OSD to MoS(F).
2. PS to the Finance Secretary.
3. Chairman and Members, CBDT.
4. Joint Secretaries/ CsIT/ Directors/ Deputy Secretaries/ Under Secretaries, CBDT.
5. C&AG of India (30 copies).
6. JS & Legal Adviser, Ministry of Law & Justice. New Delhi.
7. Institute of Chartered Accountants of India.
8. CIT (M&TP). Official Spokesperson of CBDT.
9. Principal DGIT (Systems) for uploading on departmental website.
(Neha Sahay)
Under Secretary
TPL Division
Annexure A
I. For orders passed under clause (a) of sub-section (1) of section 12AB ( reregistration):
Form 10 AC
[As per rule 17A ]
The registration is granted subject to the following conditions:-
1
Any income derived from property held under trust, wholly or in part for charitable
or religious purposes, shall not be applied, other than for the objects of the trust or
institution.
2 The trust or institution shall not have income from profits and gains of business
which is not incidental to the attainment of its objectives.
3 Separate books of account shall be maintained by such trust or institution in respect
of the business which is incidental to the attainment of its objectives.
4
The trust or institution shall not apply any part of its income from the property held
under a trust for private religious purposes, which does not enure for the benefit of
the public.
5
The trust or institution established for charitable purpose created or established
after the commencement of this Act, shall not apply any part of its income for the
benefit of any particular religious community or caste.
6 No non-genuine activity shall be carried out by the trust or institution.
7 No such activity shall be carried on by the trust or institution which is not in
accordance with all or any of the conditions subject to which it was registered.
8
The trust or institution shall comply with the requirement of any other law, as
referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1) of section
12AB.
9
The form for registration in Form No 10A has been duly filled in by providing all
the information or documents and no false or incorrect information or documents
have been provided.
10
Where the trust or institution is required to furnish application for registration
under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A the said trust
or institution shall furnish such application within the time allowed under that
clause.
11
Where the trust or institution has adopted or undertaken modifications of the
objects which do not conform to the conditions of registration, the trust or
institution shall make an application in the prescribed form and manner to the
Principal Commissioner or Commissioner, for registration of the trust or
institution, within a period of thirty days from the date of the said adoption or
modification.
Annexure B
II. For orders passed under clause (c) of sub-section (1) of section 12AB ( provisional
registration)
Form 10 AC
[As per rule 17A]
The registration is granted subject to the following conditions:-
1
Any income derived from property held under trust, wholly or in part for charitable
or religious purposes, shall not be applied, other than for the objects of the trust or
institution.
2 The trust or institution shall not have income from profits and gains of business
which is not incidental to the attainment of its objectives.
3 Separate books of account shall be maintained by such trust or institution in respect
of the business which is incidental to the attainment of its objectives.
4
The trust or institution shall not apply any part of its income from the property held
under a trust for private religious purposes, which does not enure for the benefit of
the public.
5
The trust or institution established for charitable purpose created or established after
the commencement of this Act, shall not apply any part of its income for the benefit
of any particular religious community or caste.
6 No non-genuine activity shall be carried out by the trust or institution.
7 No such activity shall be carried on by the trust or institution which is not in
accordance with all or any of the conditions subject to which it was registered.
8
The trust or institution shall comply with the requirement of any other law, as
referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1) of section
12AB.
9
The form for registration in Form No 10A has been duly filled in by providing all the
information or documents and no false or incorrect information or documents have
been provided.
10
The trust or institution shall apply for registration within 6 months of commencement
of the activities or at least 6 months prior to the expiry of period of provisional
registration, whichever is earlier.
11
Where the trust or institution has adopted or undertaken modifications of the objects
which do not conform to the conditions of registration, the trust or institution shall
make an application in the prescribed form and manner to the Principal
Commissioner or Commissioner, for registration of the trust or institution, within a
period of thirty days from the date of the said adoption or modification.
Annexure C
III. for orders passed under clause (i) of second proviso to clause (23C) of section 10 ( reapproval)
Form 10 AC
[As per rule 2C]
The approval is granted subject to the following conditions:-
1
Any income of the fund or institution or trust or any university or other educational
institution or any hospital or other medical institution, shall not be applied, other than
for the objects for which it is established.
2
The fund or institution or trust or any university or other educational institution or
any hospital or other medical institution shall not have income from profits and gains
of business which is not incidental to the attainment of its objectives.
3
Separate books of account shall be maintained by such fund or institution or trust or
any university or other educational institution or any hospital or other medical
institution in respect of the business which is incidental to the attainment of its
objectives.
4 No non-genuine activity shall be carried out by the fund or institution or trust or any
university or other educational institution or any hospital or other medical institution.
5
No such activity shall be carried on by the fund or institution or trust or any
university or other educational institution or any hospital or other medical institution
which is not in accordance with all or any of the conditions subject to which it was
notified or approved.
6
The fund or institution or trust or any university or other educational institution or
any hospital or other medical institution shall comply with the requirement of any
other law for the time being in force.
7
The form for approval in Form No 10A has been duly filled in by providing all the
required information or documents and no false or incorrect information or
documents have been provided.
8
Where the fund or institution or trust or any university or other educational institution
or any hospital or other medical institution is required to furnish application for
approval under clause (ii) of first proviso to clause (23C) of section 10, the said fund
or institution or trust or any university or other educational institution or any hospital
or other medical institution shall furnish such application within the time allowed
under that clause.
Annexure D
IV. for orders passed under clause (iii) of second proviso to clause (23C) of section 10 (
provisional approval):
Form 10 AC
[As per rule 2C ]
The approval is granted subject to the following conditions:-
1
Any income of the fund or institution or trust or any university or other educational
institution or any hospital or other medical institution, shall not be applied, other than
for the objects for which it is established.
2
The fund or institution or trust or any university or other educational institution or
any hospital or other medical institution shall not have income from profits and gains
of business which is not incidental to the attainment of its objectives.
3
Separate books of account shall be maintained by such fund or institution or trust or
any university or other educational institution or any hospital or other medical
institution in respect of the business which is incidental to the attainment of its
objectives.
4 No non-genuine activity shall be carried out by the fund or institution or trust or any
university or other educational institution or any hospital or other medical institution.
5
No such activity shall be carried on by the fund or institution or trust or any
university or other educational institution or any hospital or other medical institution
which is not in accordance with all or any of the conditions subject to which it was
notified or approved.
6
The fund or institution or trust or any university or other educational institution or
any hospital or other medical institution shall comply with the requirement of any
other law for the time being in force.
7
The form for approval in Form No 10A has been duly filled in by providing all the
information or documents and no false or incorrect information or documents have
been provided.
8
The fund or trust or institution or university or other educational institution or
hospital or other medical institution shall apply for approval within 6 months of
commencement of the activities or at least 6 months prior to the expiry of period of
provisional approval, whichever is earlier.
Annexure E
V. For orders passed under clause (i) of second proviso to sub-section (5) of section 80G
( re-approval)
Form 10 AC
[As per rule 11AA]
The approval is granted subject to the following conditions:-
1
The registration granted under section 12AB or approval granted under clause (23C)
of section 10 has not been cancelled by the Principal Commissioner or
Commissioner for specified violations as mentioned in sub-section (4) of section
12AB or under fifteenth proviso to clause (23C) of section 10.
2
The form for approval in Form No 10A has been duly filled in by providing all the
information or documents and no false or incorrect information or documents have
been provided.
3
The registration granted under section 12AB or approval granted under clause (23C)
of section 10 has not been cancelled by the Principal Commissioner or Commissioner
as authorised by the Board for non-compliance of conditions mentioned in rule 2C or
rule 17A of the Income-tax Rules, 1962.
4
Where the institution or fund is required to furnish application for approval under
clause (ii) of first proviso to sub-section (5) of section 80G, the said institution or
fund shall furnish such application within the time allowed under that clause.
Annexure F
VI. For orders passed under clause (iii) of second proviso to sub-section (5) of section
80G ( provisional approval) :
Form 10 AC
[As per rule 11AA]
The approval is granted subject to the following conditions:-
1
The registration granted under section 12AB or approval granted under clause (23C)
of section 10 has not been cancelled by the Principal Commissioner or
Commissioner for specified violations as mentioned in sub-section (4) of section
12AB or under fifteenth proviso to clause (23C) of section 10.
2
The form for approval in Form No. 10A has been duly filled in by providing all the
information or document and no false or incorrect information or documents have
been provided.
3
The institution or fund shall apply for approval within 6 months of commencement of
the activities or at least 6 months prior to the expiry of period of provisional
approval, whichever is earlier.
4
The registration granted under section 12AB or approval granted under clause (23C)
of section 10 has not been cancelled by the Principal Commissioner or Commissioner
as authorised by the Board for non-compliance of conditions mentioned in rule 2C or
rule 17A of the Income- tax Rules, 1962.

What to watch

The substituted conditions run from 1 April 2022, so conduct before that date is measured against the conditions as originally printed.
Because a 'specified violation' includes breach of a condition of registration, the substituted conditions are what a cancellation proceeding will now be tested against.
The glitch relief is confined to Form No. 10AC issued in financial year 2021-22 under the section codes the circular names; a form outside those codes is not converted.
The copy before me is clipped at 5,000 characters in the middle of the row 5 clarification, and Annexures A to F are not in it, so the substituted conditions themselves have to be read from the published circular.

Where you meet it

On a show cause notice from the Principal Commissioner or Commissioner proposing to cancel registration or approval for a specified violation, or when a Form No. 10AC wrongly headed 'provisional' is questioned in assessment.

What it names

Forms it names. Form No. 10A, Form No. 10AC

Rules it names. Rule 11AA, 17A, 2C 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.

It mentions. Circular No. 11/2022

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 116/2026 [F. No.195/13/2025-ITA-I] / SO 4706(E) : Notification in the case of Maharashtra Electricity Regulatory Commission — [भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 25 August 2026
Notification No. 112/2026 [F. No. 300196/6/2026-ITA-I] / SO 4458(E) : Notification in the case of District Legal Service Authority, Panchkula — Ministry of Finance 11 August 2026
Notification No. 109/2026 [F. No. 300196/39/2025-ITA-I] / SO 4321(E) : Notification section 536 (1) of the Income Tax Act, 2025 (30 of 2025) in the case of Odisha Joint Entrance Examination Committee — [भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 4 August 2026
Notification No. 107/2026 [F. No. 300196/65/2018-ITA-I] / SO 4319(E) : Notification section 536 (1) of the Income Tax Act, 2025 (30 of 2025) in the case of Noida Special Economic Zone Authority — [भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 4 August 2026
Notification No. 106/2026 [F. No. 300196/65/2018-ITA-I] / SO 4318(E) : Notification section 536 (1) of the Income Tax Act, 2025 (30 of 2025) in the case of Noida Special Economic Zone Authority — [भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 4 August 2026
Notification No. 104/2026 [F.No.300196/1/2026-ITA-I] / SO 4308(E) : Notification section 536 (1) of the Income Tax Act, 2025 (30 of 2025) in the case of District Legal Service Authority, Charkhi Dadri — Ministry of Finance 3 August 2026

← Circular No. 12/2022 · Circular No. 10/2022 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.