Form 10IC for adopting lower tax rate

CBDT has issued a Notification No. 10/2020 dated 12-02-2020 and notified Form No. 10-IC for exercising the option for opting lower or concession rate of income tax by a domestic company under section 115BAA.

The online 10-IC Form will be considered valid only if it is authenticated with a digital signature or an Electronic Verification Code (EVC) seeking a company’s basic details like name, PAN, registered address, date of incorporation and nature of business. Companies must acknowledge that the policy once adopted shall not be revised and additionally, companies will have to drop their concessional rate of 25% applicable under the former regime.

Section 115BAA(5) provides that the option shall be exercised by a domestic company in the prescribed manner on or before the due date

For the assessment year 2020-21, the prescribed due date for filing the return of income for a domestic company is 31st October, 2020