The Income Tax department has reminded the small companies and taxpayers to file returns by domestic businesses and corporates in Form 10-IC under Section 15BAA of the Income Tax Act, 1961 to claim a concessional corporate tax rate of 22 percent.
“The clock is ticking as the due date to file your Form 10-IC for AY 2020-21 is close! The extended due date to file Form 10-IC is 30th June 2022. Don’t wait for the last day. #FileNow,” the department tweeted through its official twitter handle today.
“Eligible Companies, if you had opted for concession tax rate under section 11513AA while filing ITR but failed to file Form 10-IC, please file it before 30th June 2022,” it said.
The Central Board of Direct Taxes (CBDT) has extended the deadline for the filing of form 10-C.
Section 15BAA of the Income Tax Act was inserted in 2019 and came into effect in 2020. As per Section115BAA, domestic businesses can opt for a concessional income tax rate of 22 percent, along with surcharge and cess (subject to satisfaction of conditions), if they forego certain specified deductions and incentives. Once this option is exercised, it will apply in the subsequent years as well and it cannot be withdrawn.
As per the subsection and the rules of Section 15BAA, companies are required to fill and submit Form 10-IC electronically on or before the due date of filing of return of income to exercise this option.
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