Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10-IC for Assessment Year 2021-22
CBDT has vide circular No. 19/2023 Dt. 23.10.2023 allowed condonation of delay for filing Form 10-IC for AY 2021-22 which was the second year for opting new regime for companies. Form 10-IC needs to be filed by companies which are opting for new regime of taxation u/s 115BAA and once the company has opted for lower tax rate under 115BAA they cannot come back to the old regime.
Under Section 115BAA companies get beneficial base tax rate of 22% for domestic companies. Similar condonation of delay was allowed for Form 10-IC for AY 2020-21 vide circular No. 6/2022 to Section 115BAA companies.
Relevant extract of circular no. 19/2023 is as under:
1. In exercise of the powers conferred under section 119(2)(b) of the Income-tax Act, 1961 (‘the Act’), the Central Board of Direct Taxes (‘CBDT’) by Circular No. 6/2022 of even number dated 17.03.2022 condoned the delay in filing of Form No. 10-IC as per Rule 21AE of the Income-tax Rules, 1962 (‘the Rules’) for the previous year relevant to A.Y. 2020-21 in cases where the conditions stipulated in the said Circular are satisfied.
2. Representations have been received by CBDT stating that Form No. 10-IC could not be filed for A.Y. 2021-22 within the due date or extended due date, as the case may be. It has been requested that the delay in filing of Form No. 10-IC for A.Y. 2021-22 may be condoned.
3. On consideration of the matter, with a view to avoid genuine hardship to the domestic companies in exercising the option u/s 115BAA of the Act, CBDT in exercise of the powers conferred under section 119(2)(b) of the Act, hereby directs that: –
The delay in filing of Form No. 10-IC as per Rule 21AE of the Rules for previous year relevant to A.Y. 2021-22 is condoned in cases where the following conditions are satisfied:
i) The return of income for relevant assessment year has been filed on or before the due date specified under section 139(1) of the Act;
ii) The assessee company has opted for taxation u/s 115BAA of the Act in item (e) of “Filing Status” in “Part A-GEN” of the Form of Return of Income ITR-6; and-
iii) Form No. 10-IC is filed electronically on or before 31.01.2024 or 3 months from the end of the month in which this Circular is issued, whichever is later.
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