TaxHeal - GST and Income Tax Complete Guide Portal

(Last Updated On: October 25, 2023)

CBDT condones delay in filing of Form 10-IC for AY 2021-22 if ITR was filed within due date

Circular No. 19/2023, dated 23-10-2023

Rule 21AE of the Income-tax Rules, 1962 prescribes the manner of exercising the option under section 115BAA for domestic companies. Such an option can be exercised by furnishing Form No. 10-IC for any previous year relevant to the assessment year beginning on or after the 1st day of April 2020.

Various representations were received by the Central Board of Direct Taxes (CBDT) stating that Form No. 10-IC could not be filed for AY 2021-22 within the due date or extended due date. To avoid genuine hardship to the domestic companies in exercising the option under section 115BAA, the board has condoned the delay in filing Form No. 10-IC for the previous year relevant to Assessment Year 2020-21.

The CBDT directed to condone the delay for the previous year relevant to AY 2021-22 in cases where the following conditions are satisfied:

i) The return of income for the relevant assessment year has been filed on or before the due date specified under section 139(1);

ii) The assessee has opted for taxation under section 115BAA in item ( e) of “Filing Status” in “Part A-GEN” of the Form of Return of Income (ITR-6) and

iii) Form No. 10-IC is filed electronically on or before 31.01.2024 or 3 months from the end of the month in which this Circular is issued, whichever is later.