In a excellent news to enterprise homeowners, the Central Board of Direct Taxes, or CBDT, has given some additional time to companies to file a key kind that’s required to avail decrease company taxes with out incentives in tax, which was supplied to them in 2019. This was relevant for the revenue earned from 2020 onwards. As per a CBDT assertion, the deadline has now been prolonged until June 30 this yr to get tax rebate of as a lot as 22 per cent.
The shape in query, Kind 10-IC, is required to filed provided that a Home Firm chooses to pay tax at concessional charge of 22 per cent underneath Part 115BAA of the Income Tax Act,1961. As per Part 115BAA of the Revenue Tax Act, Home Corporations have the choice to pay tax at a concessional charge of 22% (plus relevant surcharge and cess) offered they don’t avail specified deductions and incentives. Corporations can go for the concessional charge from the Evaluation Yr 2020 – 21 onwards provided that they file Kind 10-IC throughout the prescribed time restrict.
If companies train the choice for one yr, the rule will observe within the subsequent years too. Companies need to fill within the kind in on-line mode solely. Tax returns for revenue earned in FY20 had been to be filed the evaluation yr beginning 1 April 2020 (AY2020-21).
Nonetheless, that didn’t go as deliberate as a number of companies that claimed the advantage of low charges of tax returns haven’t individually filed the digital kind on this regard. This has led to issues.
“Failure to furnish such possibility Within the prescribed fo rm on or earlier than the due date specified u/s 139( I) of the Act leads to deni al of concessional charge of tax of twenty-two per cent to such individual,” the CBDT has mentioned in a press release.
“Representations have been acquired by the Board stating that Kind 10-IC couldn’t be filed together with the return o f revenue for A Y 2020-21, which was the primary yr of submitting of this manner. It has been requested that the delay in submitting of Kind I0-IC could also be condoned,” it added.
The assertion additionally famous that “with a view to keep away from real hardship to the home corporations in exercising the choice” of the tax charge concession, the tax authority has directed that The delay in submitting of Kind 10-IC as per Rule 21AE of the Guidelines for the earlier yr related to AY 2020-21 is condoned in circumstances the place the situations are met.