Under the Income Tax Act, Indian companies have the option to pay tax at a concessional rate of 22% plus any applicable surcharge and cess, provided they do not avail of specified deductions and incentives
The Income Tax department on Monday condoned companies’ delay in filing a key form while claiming the benefit of a lower corporate tax rate without incentives for FY21. The department wrote in a social media post that it had received requests for relief and that businesses could now file form 10-IC by 31 January 2024, subject to certain conditions.
Under the Income Tax Act, Indian companies have the option to pay tax at a concessional rate of 22% plus any applicable surcharge and cess, provided they do not avail of specified deductions and incentives. Companies are free to opt for this concessional rate from FY20 onwards if they file form 10-IC within the prescribed time limit. CBDT said one of the conditions for condoning the delay is that the income tax return for the relevant assessment year should have been filed on or before the due date.
Experts said this decision will bring relief to companies that chose the 22% tax rate when filing tax returns for the assessment year 2021-22 did not receive the concessional rate as they didn’t file form 10-IC with their tax return.
“Such companies now need to e-file form 10-IC for AY 2021-22 before 31 January 2024 in order to get the lower rate of tax of 22%,” said Ved Jain, a tax expert and former president of the Institute of Chartered Accountants of India (ICAI).
Source: https://www.livemint.com/news/india/income-tax-dept-gives-businesses-more-time-to-claim-lower-rate-for-fy21-11698077428076.html
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