Condonation of delay in filing of Form 10-IC

Facts:

• Section 115BAA of the Income Tax Act, 1961 (‘the Act’) was inserted by the Taxation Laws (Amendment) Act, 2019 w.e.f 01.04.2020. The provisions of the Section states that the domestic companies have the option where their total income shall be charged to tax at the rate of twenty-two percent subject to satisfaction of conditions contained in sub-section (2) of the section.
• As per sub-section (5) of section 115BAA of the Act read with Rule 21AE of the Rules, the taxpayer is required to submit form-10IC on or before the due date of filing of return of income u/s 139(1) of the Act and such option once exercised shall apply to subsequent assessment years as well.
• Failure to furnish such option in the prescribed form on or before the due date specified u/s 139(1) of the Act results in denial of concessional rate of tax of twenty-two percent.

Issue:

• Representations have been received by the Board stating that Form 10-IC could not be filed along with the return of income for AY 2020-21, which was the first year of filing of this form and it has been requested that the delay in filing of Form 10-IC may be condoned.

Condonation:

To avoid genuine hardship to the domestic companies, the delay in filing of Form 10-IC as per Rule 21AE of the Rules for the previous year relevant to AY 2020-21 is condoned in cases where the following conditions are satisfied:

• The return of income for AY 2020-21 has been filed on or before the due date specified under section 139(1) of the Act;
• The Assessee company has opted for taxation u/s 115BAA of the Act in (e) of “Filing Status” in “Part A – GEN” of the form of Return of Income ITR-6 and
• Form 10-IC is filed electronically on or before 30.06.2022 or 3 months from the end of the months in which this Circular is issued, whichever is later

Circular No- 6/2022 dated 17th March, 2022

Virendra Vikram, Associate, SW India