Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form 10-IC for Assessment Year 2020-21
Circular No. 6/2022 was issued by the Central Board of Direct Taxes on 17 March 2022. Its subject is Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form 10-IC for Assessment Year 2020-21.
This is a condonation. It lets an authority admit something filed late; it does not make the late filing timely, and it usually carries conditions and an outer limit of its own.
Condones the delay in filing Form No. 10-IC under rule 21AE for assessment year 2020-21, so a domestic company that failed to file the form on time is not denied the 22 per cent rate under section 115BAA. Relief is conditional on three things: the return for assessment year 2020-21 having been filed by the section 139(1) due date; the section 115BAA option having been shown in the Filing Status in Part A-GEN of the ITR-6; and Form No. 10-IC being filed electronically by 30 June 2022 or three months from the end of the month of issue of the circular, whichever is later.
Representations were received that Form No. 10-IC could not be filed with the return for assessment year 2020-21, which was the first year the form existed, and the Board acted to avoid genuine hardship to domestic companies exercising the option.
F.No.173/32/2022-lTA-J Government of India Ministry or Finance Department of Revenue Central Board or Direct Taxes Circular So. 6 /2022 .... New Delhi, the n March, 2022 Sub: Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filin g of Form 10-IC for Asscssmcnt Year 2020-21- Reg. Section 115BAA of the Income-tax Act, 1961 (the Act) was inserted by the Taxation Laws (Amendment) Act, 201 9 w.e. f. 01.04.2020. As per the Section, the income-tax payable in respect o f the total income of a person, bcing a domestic company, for any previous year relevant to the assessment year beginning on or after the I st day of April, 2020, shall, at the option of such person be computed at the rate of twenty-two per cent subj ect to satisfaction of conditions contained in sub-section(2) of the Section. 1.2 As per subscction (5) of sec tion 115 BAA of the Act rcad with Ru le 2 1 AI, of the Income-tax Rules, 1962 (the Rul es), the assessee company is required to submit Form 10- IC electronically on or before the due date of filing of return of income uls 13 9( I) of the Act and such option once exercised shall apply to subscquent assessment years. 1.3 Failure to furnish such option In the prescribed fo rm on or before the due date specified uls 139( I) of the Act results in deni al of concessional rate of tax of twenty-two per cent to such person. 2. Representations have been received by the Board stating that Form 10-IC could not be filed along wi th the return o f income for A Y 2020-21, whi ch was the first year of filing of this form. It has becn requested that the delay in filing of Form I o-Ie may he condoned. -. 3. On consideration of thc matter, with a vicw 10 avoid genuine hardship to the domestic companies in exercising the option uls 115BAA of the Act, the Central Board of Direct Taxes, in exercise of the powers conferred under section 119(2)(b) of the Act, hereby directs that:- The delay in filing of Form 10-IC as per Rule 21AE of the Rules for the previous year relevant to A. Y 2020-21 is condoned in cases where the following conditions are satisfied: i) The return of income for A Y 2020-21 has been filed on or before the due date specified under section 139( I) of the Act; ii) The assessee company has opted for taxation uls 115BAA of the Act in (e) of "Filing Status" in "Part A-GEN" of the Form of Retmn of Income ITR-6 and iii) Form 10-IC is filed electronically on or before 30.06.2022 or 3 month s from the end of the month in which this Circular is issued, whichever is later. ~.'- (Sourabb J ain) "I·\/",v-> Und er Secretary (ITA-I) Copy to:- I. PS to FM/OSD to FM/PS to MoS (R) 10SD to MoS (R) 2. PPS to Secretary(Revenue) 3. The Chairman, CBDT & All Members, CBDT 4. All Pr. Chief Commissioners Of Income-lax/Pr. Director General of Income-tax. 5. Pr. Chief Controller of Accounts, New Delhi 6. All Joint SecretariesfCslT, CBDT 7. CIT(M&TP), CBDT and Official spokesperson of CBDT. 8. The Additional Director General (PR & PP), New Delhi. 9. Add!. CIT, Data-Base Cell - for placing it on www.irsofficersonline.gov.in 10. Web Manager, 0 /0 Pr.DG IT(Systems) with request to upload on the departmental website. I I. The Guard File. ~.~( "/1-1'- (So urabh J ai n) Under Secretary (ITA-I )
You meet it in an intimation under section 143(1) or a rectification for assessment year 2020-21 that computes corporate tax at 30 per cent instead of 22 per cent because Form No. 10-IC was not on record.
A domestic company files its assessment year 2020-21 return by the section 139(1) due date and ticks the section 115BAA option in Part A-GEN of the ITR-6, but never uploads Form No. 10-IC. CPC processes at the normal rate. If the company filed Form No. 10-IC electronically by 30 June 2022, the delay stands condoned and the 22 per cent rate applies.
Rules it names. Rule 21AE of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
Source: the Income Tax Department’s own published text — its page for this instrument.