Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10-IC for Assessment Year 2021-22

CBDT today has issued Circular giving relief to those companies which have opted lower rate of tax of 22% while filing tax return for AY 2021-22 but the benefit of this lower rate was denied as form no 10-IC was missed out/not filed with the return of income resulting levy of tax at higher rate of 30% as well as Minimum alternate Tax ( MAT) .

CBDT, vide Circular No.19/2023 dt. Oct 23, 2023, issued using its power under section 119 has now proposed to condone the  delay in filing Form 10-IC to avoid genuine hardship caused to Assessees seeking Section 115BAA concession;

The delay is condonable for AY 2021-22 subject to following three conditions:

i) ITR is filed on or before the Section 139(1) due date,

ii) Assessees opted for item (e) of ‘Filing Status’ in ‘Part A – Gen’ of ITR-6, and

iii) Form 10-IC is e-filed on or before January 31, 2024.

It will be a big relief for all such companies which despite having opted for lower rate of tax in the ITR were being subjected to a higher rate of tax due to a procedural issue of not filing the Form 10-IC. Such companies now need to ensure to e-file the form 10-IC for AY 2021-22 before 31st January,2024 in order to have benefit of lower rate of tax of 22%.

 

The copy of the order is as under:

 

Circular No. 19