Income tax form 10-IC update

Income tax form 10-IC update

Nov 03, 2023

Circular No 19/2023 dated 23/10/2023 (Applicable to the corporate assessee in respect of AY 21/22 who have been denied the benefit of concessional rate of tax due to Non filing of Form 10C)

Through the above beneficial circular issued on 23.10.2023, CBDT has ushered genuine relief to those companies which have opted lower rate of tax of 22% u/s 115BAA while filing tax return for AY 2021-22 but the benefit of this lower rate was denied as form no 10-IC was missed out/not filed with the return of income resulting levy of tax at higher rate of 30% as well as Minimum alternate Tax (MAT).

Vide this circular CBDT using its power under section 119 has now provided for the condonation of delay in filing Form 10-IC to avoid genuine hardship caused to Assessees seeking Section 115BAA concession only for AY 21/22 only subject to following three conditions: 

•    ITR is filed on or before the Section 139(1) due date by such assessee, 
•    Assessees opted for item (e) of 'Filing Status' in 'Part A - Gen' of ITR-6, and 
•    Form 10-IC is e-filed on or before January 31, 2024. 

In nutshell, the above circular will provide big relief for all such companies which despite having opted for lower rate of tax in the ITR were being subjected to a higher rate of tax due to a procedural issue of not filing the Form 10-IC. 

Such companies now need to ensure to e-file the form 10-IC for AY 2021-22 before 31st January,2024 in order to have benefit of lower rate of tax of 22% by verifying the same through DSC of Authorised Signatory of the Company as per Section 140 of the Income Tax Act, 1961.

In effect, such beneficial circular would mitigate the litigation arising on account of non-grant of concessional rate due to inadvertent procedural lapses. Thus, such circular would act as win -win situation for the eligible assessees as well as appropriate authorities by saving time, cost and energy arising due to unfruitful litigation viz. appeals and/or writ petitions.

Readers, should note that such circular is applicable only to the Assessment Year 2021/22 subject to satisfying all the conditions specified under this circular.