CBDT notifies Amendment to Procedures for Filing Tax U/s 115BAA by Domestic Companies [Read Notification]

The Central Board of Direct Taxes (CBDT) has notified new additions to the methods and procedures followed by domestic companies for filing tax Under section 115BAA 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.

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: – 

“21AE. Exercise of option under sub-section (5) of section 115BAA.—

(1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAA by a person, being a domestic companies, 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-IC. 

(2) The option in Form No. 10-IC shall be furnished electronically either under digital signature or electronic verification code. 

(3) 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 filing of Form No. 10-IC; 
• 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.;”