Income Tax department has now enabled filing of Form 10-IC on e-filing portal for AY 2020-21.
Assessment year 2020-21 was the first year when the new provision of section 115BAA were made applicable for companies to pay tax at lower rate.
To opt for the beneficial provision of section 115BAA assessee was also required to file Form 10-IC before the due date of filing Income Tax return.
However, due to pandemic and various other reasons many people forgot to file Form 10-IC and because of which Income Tax department had started sending intimation and charged tax at higher rate.
We had discussed about the same in our earlier post and link for the same is as under: Form 10-IC not filed in AY 2020-21 before filing of Income tax return by companies and demand raised in intimation order – Taxontips
Now after various demand being raised from Industry CBDT had come up with a one time relaxation in form of condonation in filing Form 10-IC by virtue of circular no. 6/2022 Dt. 17.03.2022. Link for the circular 6/2022 is: [Breaking news] CBDT has allowed Condonation in filing of Form 10-IC for section 115BAA for Assessment Year 2020-21 – Taxontips
Although condonation was announced however people had still not received the facility on e-filing portal for submitting their Form 10-IC, but now Income tax department has enabled the facility to prepare and submit Form 10-IC for AY 2020-21.
However, there are two conditions for anyone who wishes to file Form 10-IC for AY 2020-21 which is as under:
The two conditions required while filing Form 10-IC for AY 2020-21 are as under:
- The return for AY 2020-21 for the company was filed before the due date mentioned under section 139(1).
- Assessee company had opted for taxation u/s 115BAA of the Act while filing it’s Income Tax return for AY 2020-21.
There is no separate condonation request form required while filing Form 10-IC, it is juts like normal or original Form 10-IC being filed for any year.
Still there are two questions which have not been answered:
- Whether the companies have to file rectification after filing of Form 10-IC. We would recommend to file a rectification for AY 2020-21 after filing the above Form.
- What will happen to the companies who have filed Form 10-IC for AY 2021-22 as they were not allowed the benefit of section 115BAA for AY 2020-21 and this relaxation was announced days after the due date for filing Income Tax return for AY 2021-22.
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