How Domestic Company can file Form 10-IC for opting concessional rate

FAQs on How Domestic Company can file Form 10-IC for opting concessional rate

Q.1 Is it mandatory for all applicable taxpayers (Domestic Companies) to file Form 10-IC?

Ans. No. This is optional. Form 10-IC is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22% under Section 115BAA of the Income Tax Act,1961.

Q.2 How can I file the Form 10-IC?

Ans. You can file Form 10-IC only in online mode after logging into the e-Filing portal.

Q.3 Do I need to file the form again for the next assessment year?

Ans. No. If you have opted for concessional tax rates once, it shall apply to subsequent assessment years and cannot be withdrawn.

Q.4 How do I know that the form has been submitted successfully?

Ans. You will receive a confirmation on your email ID registered with the e-Filing portal. Additionally, you can also view the status on your Worklist under For your Actionstab.

Q.5 Do I need to e-Verify while submitting the form?

Ans. Yes. Your form will be submitted once you complete e-Verification of the form using DSC only.

Q.6 What is the time limit for filing Form 10-IC?

Ans. You will be required to file Form 10-IC on or before the due date specified under sub-section (1) of Section 139 for furnishing the returns of the income for the previous year to avail the benefit.

Q.7 Can Form 10-IC be filed offline?

Ans. No, you can not file Form 10-IC using Offline Utility on the e-Filing portal. You can only file Form 10-IC through online mode.

Q.8 What is the purpose of filing Form 10-IC?

Ans. 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.

Manual on How Domestic Company can file Form 10-IC for opting concessional rate

1.Overview

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 concessional rate from Assessment Year 2020-21 onwards only.

For opting to pay the tax at a concessional rate as per Section 115BAA, it is essential to file Form 10-IC on or before the due date specified under sub-section (1) of Section 139 for furnishing the returns of income for the previous year to avail the benefit. Such option once exercised in a particular financial year it cannot be withdrawn subsequently.

Form 10-IC can be submitted through online mode. This service enables the registered user to file Form 10-IC using online mode on the e-Filing portal.

2. Prerequisites for availing this service

• Registered user on the e-Filing portal with valid username and password
• Valid and active Digital Signature Certificate (to e-Verify using DSC)
• Timelines for furnishing the return u/s 139(1) of the Act has not lapsed

3. About the Form

3.1. Purpose

Application for exercise of option under sub-section (5) of Section 115BAA for paying taxes at a concessional rate is to made in Form 10-IC. As per Section 115BAA of the Income Tax Act, 1961, domestic companies can exercise the option to pay tax at a concessional tax rate of 22% (plus surcharge and cess) subject to fulfilment of conditions stipulated in Section 115BAA.

3.2. Who can use it?

All users registered as Domestic Company can access this form.

4. Form at a Glance

Form 10-IC has 4 sections:

1. Assessing Officer

2. Basic Information

3. Additional Information

4. Verification

4.1. Details of Assessing Officer

The first section of the form entails details of your Assessing Officer. You are only required to confirm the details in this section.

4.2. Basic Information

The next section contains basic details (including personal information & nature of business activities) of the Domestic Company. You are required to select Sector as per nature of business applicable to you.

4.3 Additional Information

The next section contains details of IFSC units (if any) and option exercised u/s 115BA. Please note that if you had opted for taxation u/s 115BA, you will need to withdraw the same.

4.4. Verification

The final section contains a self-declaration form containing criteria as per the Section 115BAA of the Income Tax Act, 1961. Agree to the terms and conditions displayed on the Verification page.

5. How to Access and Submit

You can fill and submit Form 10-IC through the following method:

• Online method – through the e-Filing portal

Follow the below steps to fill and submit Form 10-IC through online mode.

Step 1: Log in to the e-Filing portal using your user ID and password.

Step 2: On your Dashboard, click e-File > Income tax forms > File Income Tax Forms.

Step 3: On the File Income Tax Forms page, select Form 10-IC. Alternatively, enter Form 10-IC in the search box to file the form.

Step 4: On the Form 10-IC page, select the relevant Assessment Year and click Continue.

Step 5: On the Instructions page, click Let’s Get Started.

Step 6: On click of Let’s Get Started, Form 10-IC is displayed. Fill all the required details and click Preview.

Step 7: On the Preview page, verify the details and click Proceed to e-Verify.

Step 8: Click Yes to submit.

Step 10: On clicking Yes, you will be taken to e-Verify page where you can verify using Digital Signature Certificate.

Note: Refer to the How to e-Verify and Register DSC user manuals to learn more.

After successful e-Verification, a success message is displayed along with a Transaction ID and an Acknowledgement Receipt Number. Please keep a note of the the Transaction ID and Acknowledgement number for future reference. You will also receive a confirmation message on your email ID registered with the e-Filing portal.