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Query u/s 115BAA

Tax queries 145 views 1 replies

Ours was a Public Ltd. company. For AY 2020-21 we have exercised option for lower tax regime u/s 115BAA by filing form 10-IC. U/s 115BAA the option once exercised shall apply to subsequent asst. years.

 

The Company has been converted into Private Ltd. Company as per fresh certificate of incorporation dated 11.06.2021issued on conversion. Company name has been changed in PAN card. There is no change in the PAN number. It is the same as earlier.

 

Our queries are:

 

  1. In view of change in the name/nature of the Co. from Public Ltd. to Private Ltd., whether we have to exercise option again for AY 2021-22 by filing form 10-IC.

 

  1. Even if there is no requirement to exercise option again, as an abundant precaution, should we file form 10-IC again? Will it be accepted at the income tax portal? If accepted, whether there can be any harm in that?
Replies (1)

Need Not and cannot file form 10IC upon conversion into private limited co. for following reasons:

a. Second proviso to sub-section 5 of section 115BAA has placed a ban on subsequent withdrawal of the option once exercised under this section;

b. In your case, even after the conversion, you are allowed to retain the same PAN by way of name change;

It may be noted, in view of the above reasons, even if you like to exercise option once again by filing 10 IC, the system won't allow against the same PAN no.


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