CBDT amends Procedures for Filing Tax u/s 115BAB by New Manufacturing Companies [Read Notification]

Method of Tax Collection - CBDT - Concessional Corporate Taxation - CBDT - Filing Tax -Taxscan

The Central Board of Direct Taxes ( CBDT ) has notified new additions to the methods and procedures followed by new manufacturing companies for filing tax under section 115 BAB of the Income Tax Act, 1961.

These new tax rates were introduced by the Government of India through the Taxation (Amendment) Ordinance 2019 on the 20th of September 2019 which offered low tax rates of 15% (plus surcharge and cess) to new manufacturing companies.

The new amendment as published in the official gazette states, “In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 21AD, the following rules shall be inserted, namely: – 

21AF. Exercise of option under sub-section (7) of section 115BAB.

  •  The option to be exercised in accordance with the provisions of sub-section (7) of section 115BAB 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 2020, shall be in Form No. 10-ID. 
  • The option in Form No. 10-ID shall be furnished electronically either under digital signature or electronic verification code. 
  • The Principal Director General of Income-tax (Systems) or the Director-General of Income-tax (Systems), as the case may be, shall- specify the procedure for CBDT filing tax of Form No. 10-ID; 
  • specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and 
  • be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.”
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