The Income Tax Department is giving companies more time to apply for a lower tax rate for FY21

New Delhi: The Income Tax department on Monday condoned companies’ delay in filing an important form while taking advantage of 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 companies could now file Form 10-IC by January 31, 2024, subject to certain conditions.

Under the Income Tax Act, Indian companies have the option to pay taxes at a reduced rate of 22% plus applicable surcharges and levies, provided they do not avail of certain deductions and incentives. Companies can opt for this concessional rate from FY2020 onwards if they file Form 10-IC within the stipulated deadline. CBDT said one of the conditions for condoning the delay is that the income tax return for the relevant assessment year must have been filed on or before the due date.

Experts said that this decision will bring relief to companies which opted for the 22% tax rate while filing their tax returns for the assessment year 2021-22 but did not get the reduced tax rate as they did not submit Form 10 with their tax return -IC had submitted.

“Such companies will now have to file Form 10-IC for the financial year 2021-22 through email before January 31, 2024 to avail the lower tax rate of 22%,” said Ved Jain, tax expert and former president of the Institute of Chartered Accountants of India (ICAI).

“Exciting news! Mint is now on WhatsApp channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!

Sybil Alvarez

"Incurable gamer. Infuriatingly humble coffee specialist. Professional music advocate."

Leave a Reply

Your email address will not be published. Required fields are marked *