The Central Board of Direct Taxes (CBDT) has issued a pivotal circular allowing condonation of delays in filing Form 10IC and Form 10ID for the assessment years 2020-21, 2021-22, and 2022-23.
These forms are important for taxpayers opting for concessional tax regimes under Sections 115BAA and 115BAB of the Income-tax Act, 1961. The move is expected to alleviate genuine hardships faced by taxpayers, particularly during the COVID-19 pandemic, which disrupted regular compliance timelines.
For delays of up to 365 days, Principal Commissioners and Commissioners of Income Tax have been authorised to admit and resolve such applications. In cases where the delay exceeds 365 days, the authority rests with Principal Chief Commissioners, Chief Commissioners, and Directors General of Income Tax.
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To qualify for condonation, taxpayers must meet two conditions:
First, the return of income for the relevant assessment year must have been filed within the due date under Section 139(1) of the Income-tax Act.
Second, the taxpayer must have opted for taxation under Section 115BAA (via Form 10IC) or Section 115BAB (via Form 10ID) in the “Filing Status” section of the ITR-6 form. Lastly, the delay must be attributable to a reasonable cause, and the case must demonstrate genuine hardship on its merits.
The circular further states that applications for condonation of delay must be submitted within three years from the end of the relevant assessment year. This three-year time limit will apply to all applications filed after the issuance of the circular. Additionally, competent authorities are required to process and dispose of such applications within six months from the end of the month in which the application is received.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
Notably, this circular also applies retrospectively to all pending applications for condonation of delay as of the circular’s issuance date. Competent authorities are expected to thoroughly evaluate each case, ensuring compliance with the circular conditions while confirming that taxpayers were prevented by reasonable cause from filing the forms within the prescribed time limits.
Taxpayers eligible for this relief are advised to promptly file their applications to secure concessional tax benefits under Sections 115BAA and 115BAB.
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