Businesses Get Time Till June to File Form to Get Tax Rebate, Says CBDT; Details Here
Businesses Get Time Till June to File Form to Get Tax Rebate, Says CBDT; Details Here
The form in question, Form 10-IC, is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22 per cent under Section 115BAA of the Income Tax Act,1961.

In a good news to business owners, the Central Board of Direct Taxes, or CBDT, has given some extra time to businesses to file a key form that is required to avail lower corporate taxes without incentives in tax, which was offered to them in 2019. This was applicable for the income earned from 2020 onwards. As per a CBDT statement, the deadline has now been extended till June 30 this year to get tax rebate of as much as 22 per cent.

The form in question, Form 10-IC, is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22 per cent under Section 115BAA of the Income Tax Act,1961. As per Section 115BAA of the Income Tax Act, Domestic Companies have the option to pay tax at a concessional rate of 22% (plus applicable surcharge and cess) provided they do not avail specified deductions and incentives. Companies can opt for the concessional rate from the Assessment Year 2020 – 21 onwards only if they file Form 10-IC within the prescribed time limit.

If businesses exercise the option for one year, the rule will follow in the subsequent years too. Businesses have to fill in the form in online mode only. Tax returns for income earned in FY20 were to be filed the assessment year starting 1 April 2020 (AY2020-21).

However, that did not go as planned as several businesses that claimed the benefit of low rates of tax returns have not separately filed the electronic form in this regard. This has led to complications.

“Failure to furnish such option In the prescribed fo rm on or before the due date specified u/s 139( I) of the Act results in deni al of concessional rate of tax of twenty-two per cent to such person,” the CBDT has said in a statement.

“Representations have been received by the Board stating that Form 10-IC could not be filed along with the return o f income for A Y 2020-21, which was the first year of filing of this form. It has been requested that the delay in filing of Form I0-IC may be condoned,” it added.

The statement also noted that “with a view to avoid genuine hardship to the domestic companies in exercising the option” of the tax rate concession, the tax authority has directed that The delay in filing of Form 10-IC as per Rule 21AE of the Rules for the previous year relevant to AY 2020-21 is condoned in cases where the conditions are met.

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