Form 10-IC not filed for PY : Demand received

As per Sec 115BAA, Beneficial rate of 22% is eligible only when form 10IC was filed before filing the ITR by a domestic company.

Form 10IC was inadvertently not filed for AY 20-21 before due date and now demand 143(1) has been passed by the IT authorities for the AY 2020-21 consider 30% as the tax rate.

We have filed 10IC this month only.

 

Questions:

1. Remedial actions, if any for this so that Income is taxed @ 22% for the AY 20-21

2. Whether IT authorities are correct to Tax @ 30% or should 25% we charged ?

 

Replies (2)
Quick Summary
A domestic company missed the deadline for filing Form 10-IC, which is required to avail the beneficial tax rate of 22% under Section 115BAA. Consequently, the Income Tax authorities have issued a demand notice, taxing the income at 30% for AY 2020-21. The company has since filed Form 10-IC and is seeking remedial actions to have the income taxed at the intended 22% rate.

Hi Prateek,

This has happened with many companies. Representations were given to CBDT for relaxation for the same but no response. Have you been able to file 10IC for AY 2020-21?

Answer to your queries:

1. Submit 10IC in Hard Copy with AO and reply to demand online. Application for rectification u/s 154 to be filed for mistake apparent from record (Appeal can also be preferable)

2. 30% is rightly charges as no option (Y/N wet Turnover of 400 Crore) can be selected in ITR if 115BAA is selected in Part-A

 

 

 

 

 

 

 

Much needed relaxation 

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