The CBDT (Central Board of Direct Taxes) has released a new notification on October 23, 2023. This new notification is a huge relaxation and allows people more time to submit a Form 10IC for the year 2021-22. Let’s understand it in detail so that you can benefit from it.
CBDT’s New Deadline for Form 10-IC
- The CBDT has extended the deadline to file Form 10-IC for the financial year 2021-22 to January 31, 2024.
- This is because many companies faced challenges in filing the form by the original deadline or the extended deadline.
Eligible for the extension, companies must meet the following conditions:
- The relevant assessment year’s ITR Filing is completed on or before the due date.
- The company must have opted for taxation under section 115BAA of the Income-tax Act.
- Form 10-IC must be filed electronically by January 31, 2024, or within three months from the end of the month in which Circular No. 19/2023 is issued, whichever date is later.
Source: Circular No. 19/2023
Taxation Benefits through Form 10-IC & Section 115BAA
- Section 115BAA of the Income Tax Act allows domestic companies to pay tax at a lower rate of 22% (plus surcharge and cess), but only if they don’t take advantage of certain deductions and incentives.
- Companies can choose this lower rate starting from the 2020-21 tax year, but only if they file Form 10-IC on time.
- By filing Form 10-IC, domestic companies can pay income tax at the reduced rate of 22% (plus surcharge and cess), as long as they meet certain conditions.
Stepwise Process to submit Form 10-IC
- Log in to the Income tax e-filing portal.
- Go to e-file > Income Tax Forms > File Income Tax Forms.
- Search for Form 10-IC and select the option ‘Application for the exercise of option under Section 115 BAA(5) of the Income Tax Act, 1961’.
- Select the relevant assessment year and click Continue.
- Fill in all the required details in the four sections of Form 10-IC:
- Section 1: Assessing Officer
- Section 2: Basic Details
- Section 3: Other Information
- Section 4: Verification
- Preview and submit the form.
- E-verify the form using a Digital Signature Certificate.
- Once the form is successfully e-verified, it will be submitted to the income tax department. You will receive a confirmation on your registered email ID.
Important Note: Form 10-IC can only be filed online.
For getting Form 1o-IC filed or any other queries, feel free to contact our taxation experts at: 8881-069-069.
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