DOMESTIC COMPANIES OPTING CONCESSIONAL RATE SHOULD FILE 10-IC
As per Section 115BAA of the Income Tax Act, Domestic Companies have the option to pay tax at a concessional rate of 22% (plus applicable surcharge and cess) provided they do not avail specified deductions and incentives. Companies can opt for concessional rate from Assessment Year 2020-21 onwards only.
For opting to pay the tax at a concessional rate as per Section 115BAA, it is essential to file Form 10-IC on or before the due date specified under sub-section (1) of Section 139 for furnishing the returns of income for the previous year to avail the benefit. Such option once exercised in a particular financial year it cannot be withdrawn subsequently.
Form 10-IC can be submitted through online mode. This service enables the registered user to file Form 10-IC using online mode on the e-Filing portal.
What is the purpose of filing this Form?
Application for exercise of option under sub-section (5) of Section 115BAA for paying taxes at a concessional rate is to made in Form 10-IC. As per Section 115BAA of the Income Tax Act, 1961, domestic companies can exercise the option to pay tax at a concessional tax rate of 22% (plus surcharge and cess) subject to fulfilment of conditions stipulated in Section 115BAA.
Section 115BAA was introduced in Income Tax Act, 1961 through Taxation Laws Amendment Act 2019, in order to simplify tax laws, according to which companies were given option to pay tax at lower rates. As per sec 115 BAA (5), the option once exercised shall apply to subsequent assessment years. The company is required to submit Form 10-IC before filing of income tax return, expressing its intention to opt to pay tax under Simplified Tax Regime for all times to come.
Pre-requisites for availing this Form:
FAQ'S ON FORM 10-IC:
1. Is it mandatory for all applicable taxpayers (Domestic Companies) to file Form 10-IC?
Ans. No. This is optional. Form 10-IC is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22% under Section 115BAA of the Income Tax Act,1961.
2. How can I file the Form 10-IC?
Ans. You can file Form 10-IC only in online mode after logging into the e-Filing portal.
3. Do I need to file the form again for the next assessment year?
Ans. No. If you have opted for concessional tax rates once, it shall apply to subsequent assessment years and cannot be withdrawn.
4. How do I know that the form has been submitted successfully?
Ans. You will receive a confirmation on your email ID registered with the e-Filing portal. Additionally, you can also view the status on your Worklist under For your Actionstab.
5. Do I need to e-Verify while submitting the form?
Ans. Yes. Your form will be submitted once you complete e-Verification of the form using DSC only.
6. What is the time limit for filing Form 10-IC?
Ans. You will be required to file Form 10-IC on or before the due date specified under sub-section (1) of Section 139 for furnishing the returns of the income for the previous year to avail the benefit.
Procedure to fill and submit Form 10-IC through online mode.
Follow the below steps to fill and submit Form 10-IC through online mode.
Step 1: Log in to the e-Filing portal using your user ID and password.
Step 2: On your Dashboard, click e-File > Income tax forms > File Income Tax Forms.
Step 3: On the File Income Tax Forms page, select Form 10-IC. Alternatively, enter Form 10-IC in the search box to file the form.Step 4: On the Form 10-IC page, select the relevant Assessment Year and click Continue.
Step 5: On the Instructions page, click Let's Get Started.
Step 6: On click of Let's Get Started, Form 10-IC is displayed. Fill all the required details and click Preview.
Step 7: On the Preview page, verify the details and click Proceed to e-Verify.
Step 8: Click Yes to submit.
Step 9: On clicking Yes, you will be taken to e-Verify page where you can verify using Digital Signature Certificate.
Let us understand the form with their sections.
There are four sections in the form. They are:
I. DETAILS OF ASSESSING OFFICER:
The first section of this form contains details of Assessing Officer. You have to enter the required details of assessing officer in this section.
II. BASIC INFORMATION:
The next section of the form contains Basic Information which includes personal information & nature business activities of the Domestic Company. You are required to select sector as per the nature of business applicable to you.
III. ADDITIONAL INFORMATION:
The Next section contains details of IFSC units and option exercised under the section 115BA. Kindly note that if you had opted for taxation under section 115BA, you will have to withdraw the same.
The last section contains a self declaration form containing criteria as per the section 115BAA of the Income Tax Act,1961. Agree to the terms and conditions displayed on the verification page
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