The Central Board of Direct Taxes (CBDT) has recently issued a notification regarding the condonation of delay under Section 119(2)(b) of the Income Tax Act, 1961, specifically related to the filing of Form No. 10-IC for the Assessment Year 2021-22.
Form 10-IC comes into play when a Domestic Company chooses to avail the benefit of a reduced tax rate of 22% as per Section 115BAA of the Income Tax Act, 1961.
The CBDT has received representations highlighting the inability to file Form No. 10-IC for the Assessment Year 2021-22 within the due date or extended due date. Consequently, a request has been made to condone the delay in filing Form No. 10-IC for the said Assessment Year.
In situations where certain conditions are met, the delay in filing Form No. 10-IC, as outlined in Rule 21AE of the applicable rules for the previous year relevant to the Assessment Year 2021-22, will be condoned.
Firstly, the taxpayer must have filed the income tax return for the relevant Assessment Year on or before the due date specified under Section 139(1) of the Income Tax Act.
Secondly, the company in question must have specifically opted for taxation under Section 115BAA of the Act by selecting item (e) in the “Filing Status” section of “Part A-GEN” in the Form of Return of Income, namely ITR-6.
Lastly, it is required that Form No. 10-IC is filed electronically before 31.01.2024 or within 3 months from the end of the month in which this Circular is issued, whichever date is later.
