The Central Board of Direct Taxes (CBDT) has given further time until finish of June for companies to file a key kind that’s essential for availing decrease company tax price of twenty-two% with out tax incentives that was supplied in 2019 and was relevant for revenue earned in FY20 onwards.
To avail this decrease tax price, companies must go for it by submitting kind 10-IC in digital kind earlier than submitting the tax returns. For revenue earned in FY20, tax returns have been to be filed within the evaluation yr beginning 1 April 2020 (AY2020-21). The choice as soon as exercised, will apply for subsequent years too. Nevertheless, many companies which claimed the advantage of decrease price of their tax returns haven’t filed the desired kind individually on this regard, resulting in hardships.
CBDT stated in a press release that failure to submit this way would result in denial of the concessional 22% tax price and in view of the representations obtained for reduction, further time is being given.
“Representations have been obtained by the Board stating that kind 10 IC couldn’t be filed together with the return of revenue for evaluation yr 2020-21, which was the primary yr of submitting of this way. It has been requested that the delay in submitting of kind 10 IC could also be condoned,” CBDT stated within the round.
It stated that “with a view to keep away from real hardship to the home corporations in exercising the choice” of the decrease tax price, CBDT has directed that the delay in submitting this way for 2020-21 evaluation yr is condoned in circumstances the place sure situations are met. The situations say that the enterprise that seeks this price ought to have filed tax returns for evaluation yr 2020-21 on or earlier than the due date and have opted for the profit within the return kind and kind 10 IC is filed on or earlier than 30 June 2022.
“Many corporations have opted for brand new decrease price of twenty-two% tax in AY 2020-21 however haven’t filed this way which was statutory requirement to modify over to the brand new price. Whereas processing return of AY 2020-21, big calls for have been created as increased price of 30% was utilized in processing. This can be an enormous reduction to those corporations,” stated Ved Jain, former president of Institute of Chartered Accountants of India (ICAI).
Supply: Live Mint