CBDT condones delay in filing of Form 10-IC for companies opting for Sec. 115BAA

Circular no 6/2022, dated 17-03-2022

Section 115BAA of the Income-tax Act allows a domestic company to pay income tax at 22% plus 10% surcharge and 4% cess (effective tax rate 25.17%) provided the total income is computed without claiming specified exemption or deductions. A domestic company can exercise this option regarding any assessment year by furnishing the necessary details on or before the due date for furnishing of return of income (ITR). The benefit of Section 115BAA was available with effect from Assessment Year 2020-21.

The eligible domestic company has to exercise this option by filing Form No. 10-IC on or before the due date for furnishing the return of income, and once such option is exercised, it shall apply to subsequent assessment years.

The Central Board of Direct Taxes (CBDT) has received representation from the stakeholders stating that Form 10-IC couldn’t be filed with the return of income for the Assessment Year 2020-21, which was the first year of filing this form. Thus, the delay in filing Form 10-IC may be condoned.

Considering the matter, the CBDT has issued directions that the delay in filing of Form 10-IC for Assessment Year 2020-21 is condoned if the domestic companies satisfy the following conditions:

a) The ITR for Assessment Year 2020-21 has been filed on or before the due date specified under section 139(1), i.e., the original due date of filing of return;
b) The domestic company has opted for section 115BAA under the ‘Filing Status’ in ‘Part A-GEN’ of the ITR-6 Form; and
c) Form 10-IC is filed electronically on or before 30-06-2022 or 3 months from the end of the month in which this Circular is issued, whichever is later.

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