CBDT Grants Condonation for AY 2021-22 Form 10-IC Filing Until 31.01.2024

Circular No. 19/2023 :​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

In a recent development, the Central Board of Direct Taxes (CBDT) has provided relief to domestic companies by extending the deadline for filing Form No. 10-IC for Assessment Year (AY) 2021-22. This move aims to address issues related to the submission of this crucial document, helping companies avoid undue hardship. Let’s delve into the details of this significant announcement and understand the conditions and implications.

Detailed Analysis

The CBDT’s decision is outlined in Circular No. 19/2023, dated October 23, 2023. This circular invokes the powers conferred under section 119(2)(b) of the Income-tax Act, 1961. To comprehend the significance of this extension, it’s essential to consider the following points:

1. Condonation of Delay: The circular primarily focuses on condoning the delay in filing Form No. 10-IC for AY 2021-22.
2. Background: To provide context, Circular No. 6/2022, issued on March 17, 2022, previously allowed for the condonation of delays in filing Form No. 10-IC for the previous year relevant to AY 2020-21. This relief was provided if specific conditions were met.
3. Received Representations: In response to the earlier circular, CBDT received representations from various stakeholders. These representations highlighted the challenges faced in filing Form No. 10-IC for AY 2021-22 within the prescribed due date or the extended due date.
4. Objective: The CBDT’s objective is to prevent genuine hardship faced by domestic companies that wish to exercise the option under section 115BAA of the Income-tax Act.
5. Conditions for Condonation: For the delay in filing Form No. 10-IC to be condoned, the following conditions must be satisfied:
   • The return of income for the relevant assessment year must have been filed on or before the due date specified under section 139(1) of the Income-tax Act.
   • The assessee company has opted for taxation under section 115BAA of the Act by selecting item (e) of “Filing Status” in ‘”Part A-GEN” of the Form of Return of Income ITR-6.
   • Form No. 10-IC is filed electronically on or before January 31, 2024, or within three months from the end of the month in which Circular No. 19/2023 is issued, whichever date is later.

Conclusion

The CBDT’s decision to extend the deadline for filing Form No. 10-IC for AY 2021-22 comes as a relief for domestic companies seeking to exercise the option under section 115BAA of the Income-tax Act. By ensuring that certain conditions are met, companies now have more time to complete this essential filing, reducing the burden and hardship associated with strict deadlines. This move underscores the CBDT’s commitment to facilitating compliance and addressing the concerns of taxpayers. It’s crucial for eligible companies to take advantage of this extension and ensure their filings are in order.

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F.No.173/32/2022-ITA-I
Government Of India
Ministry Of Finance
Department Of Revenue
Central Board Of Direct Taxes
New Delhi

Circular No. 19/2023-Income Tax, Dated: October 23, 2023

Sub: 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 – Reg.

In exercise of the powers conferred under section 119(2)(b) of the Income-tax Act, 1961 (‘the Act’), the Central Board of Direct Taxes (‘CBDT’) by Circular No. 6/2022 of even number dated 17.03.2022 condoned the delay in filing of Form No. 10-IC as per Rule 21AE of the Income-tax Rules, 1962 (‘the Rules’) for the previous year relevant to A.Y. 2020-21 in cases where the conditions stipulated in the said Circular are satisfied.

2. Representations have been received by CBDT stating that Form No. 10-IC could not be filed for A.Y. 2021-22 within the due date or extended due date, as the case may be. It has been requested that the delay in filing of Form No. 10-IC for A.Y. 2021-22 may be condoned.

3. On consideration of the matter, with a view to avoid genuine hardship to the domestic companies in exercising the option u/s 115BAA of the Act, CBDT in exercise of the powers conferred under section 119(2)(b) of the Act, hereby directs that: –

The delay in filing of Form No. 10-IC as per Rule 21AE of the Rules for previous year relevant to A.Y. 2021-22 is condoned in cases where the following conditions are satisfied:

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

ii) The assessee company has opted for taxation u/s 115BAA of the Act 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.

(Vikas Singh)
Director (ITA-I)