CBDT has recently vide Notification 10 dated February 12, 2020, issued Income-tax (4th Amendment) Rules, 2020, effective from April 01, 2020. As per the amended rules, a person, being a domestic company, exercising an option for a concessional corporate tax rate of 22 percent under sub-section (5) of section 115BAA, for any previous year relevant to the assessment year beginning on or after the 1st day of April 2020, shall need to file Form No. 10-IC.
The option in Form No. 10-IC can be exercised through filing the aforesaid form electronically, either through attaching the digital signature of the filer or through Electronic Verification Code (‘EVC’) mode. Similarly, a taxpayer a person, being a domestic company, that exercises its option for concessional tax rate under sub-section (7) of section 115BAB for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall need to upload Form No. 10-ID.
The aforesaid option to file Form No. 10-ID can be exercised either through filing the aforesaid form electronically, either through attaching the digital signature of the filer or through EVC mode. The Notification contains the formats of respective Forms 10-IC and 10-ID. It is worthwhile to note that the aforesaid section applies to New Domestic Companies registered on or after October 01, 2019. The Company must be engaged in the manufacture or production of an article or thing and its manufacturing operations must be commenced on or before March 31, 2023. Furthermore, in order to avail the benefit of concessional corporate tax rate under the aforementioned two-section 115BAA and 115BAB, the opting companies must forego existing deductions and exemptions as prescribed in the stated sections respectively.
The formats of the two Forms are attached herewith:
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