The Central Board of Direct Taxes (CBDT) recently released Form 10-IB for Start Ups enabling them to opt for lower tax rate.
Finance Minister Arun Jaitley, during his budget speech, had extended three year tax holiday in a block of seven years instead of five years for eligible start-ups, giving them more time to take advantage of the benefit.
The recent notification inserts Rule 21AD to the Income Tax Rules provides for exercise of option under sub-section 115BA(4) of the Income Tax Act.
The Notification stated that “The option to be exercised in accordance with the provisions of sub-section (4) of section 115BA of the Income Tax Act by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2017, shall be in Form No. 10-IB.”
“The option in Form 10-IB can be filed either by electronically either under digital signature or electronic verification code”, it also added.
Read the full text of the Notification below.
