Form 10IC: Domestic Companies opting for concessional rate

Last Updated On: March 5, 2022, 9:09 p.m.
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FORM 10IC: DOMESTIC COMPANY OPTING FOR CONCESSIONAL RATE 

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 of 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 Such an option once exercised in a particular financial year it cannot be withdrawn subsequently.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.

 

Purpose of the Form:

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 of specified deductions and incentives. Companies can opt for the concessional rate from the Assessment Year 2020 – 21 onwards only if they file Form 10-IC within the prescribed time limit.

 

 

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 of the benefit.

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 Such an option once exercised in a particular financial year it cannot be withdrawn subsequently.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. 2. Prerequisites for availing this service Registered user on the e-Filing portal with a valid username and password Valid and active Digital Signature Certificate (to e-Verify using DSC) Timelines for furnishing the return u/s 139(1) of the Act has not lapsed.

 

Let us understand the form at a glance:


The form -IC  has 4 sections:

1. Assessing Officer

2. Basic Information

3. Additional Information
4. Verification

Details of Assessing Officer: The first section of the form entails details of your Assessing Officer. You are only required to confirm the details in this section.

Basic Information The next section contains basic details (including personal information & nature of business activities) of the Domestic Company. You are required to select a Sector as per the nature of business applicable to you.

Additional Information The next section contains details of IFSC units (if any) and options exercised u/s 115BA. Please note that if you had opted for taxation u/s 115BA, you will need to withdraw the same.


How to Access and Submit the Form 10-IC:

You can fill and submit Form 10-IC through the following method:

Online method – through the e-Filing portal 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 in 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 the e-Verify page where you can verify using Digital Signature Certificate.


After successful e-Verification, a success message is displayed along with a Transaction ID and an Acknowledgement Receipt Number. Please keep a note of the Transaction ID and Acknowledgement number for future reference. You will also receive a confirmation message on your email ID registered with the e-Filing portal.

 

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