The Central Board of Direct Taxes (CBDT) has extended the deadline for domestic businesses and corporates to submit Form 10-IC under Section 15BAA of the Income Tax Act to claim a concessional corporate tax rate of 22 percent.
The deadline has been extended to June 30 2022 or 3 months from the date of the circular. Businesses can submit this form electronically before the due date.
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 Once this option is exercised, it will apply in the subsequent years as well and it cannot be withdrawn.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.
However, in the first year of filing, many companies whih claimed the concessional tax rate failed to submit Form 10-IC additionally, along with their Income Tax returns filing. The Board had received many requests to condone the delay in submitting Form 10-IC as businesses faced hardships.
On consideration of the matter, intending to avoid genuine hardships to the domestic companies, the Board has extended the deadline for corporates to submit the Form 10-IC electronically if they have filed their income tax return on time and opted for the concessional tax rate under the Section 15BAA.
(Edited by : Thomas Abraham)
