The Central Board of Direct Taxes (CBDT) vide Notification No. 10/2020 dated 12.02.2020 has notified Forms 10-IC and 10-ID for existing companies that want to avail lower Income Tax rate and new manufacturing firms, respectively.
FORM 10-IC
1. What is Form 10-IC– Form 10-IC shall be filed by all the companies that are incorporated and operating in India and paying the corporate tax under section 115BAB of the Income Tax Act.
2. Concessional Rate
Concessional rate of Tax is 22% under Section 115BAA of the Income Tax Act,1961. The effective rate including the entire cess and surcharges that are levied, the aggregate percentage becomes 25.17%
3. How can I file the Form 10-IC?
You can file Form 10-IC only in online mode after logging into the e-Filing portal. Form 10 IC can be filed by authenticated it through digital signature or an EVC i.e. electronic verification code whichever is applicable.
4. Is it mandatory to file by all company?
Form 10-IC shall be filed by those companies only who are opting section 115BAB and paying tax at concessional rate. If the company have opted for concessional tax rates once, it shall apply to subsequent assessment years and cannot be withdrawn.
5. What is the time limit for filing Form 10-IC?
Form 10-IC shall be filed on or before the due date specified under sub-section (1) of Section 139 for furnishing the returns of the income for the previous year to avail the benefit.
FORM 10-ID
1. What is Form 10-ID?
Manufacturing units that are incorporated after 1st October, 2019 and are willing to adopt the concessional tax rates under Section 115BAB of the Income Tax Act needs to file Form 10 ID.
2. Due date of filing
Form 10-ID shall be filed on or before the due date specified under sub-section (1) of Section 139 for furnishing the returns of income for the first assessment year commencing on or after 1st day of April, 2020 to avail the benefit.
2. Concessional Rate
The concessional tax rate is 15% (plus applicable surcharge and cess).
4. Is it mandatory to file by all company?
Form 10-ID shall be filed by those manufacturing companies only who are opting section 115BAB and paying tax at concessional rate. If the company have opted for concessional tax rates once, it shall apply to subsequent assessment years and cannot be withdrawn.
4. How can I file and submit Form 10-ID?
Company can file form 10-ID through the online mode only (through the e-Filing portal). Form 10 IC can be filed by authenticated it through digital signature or an EVC i.e. electronic verification code whichever is applicable.