IMPORTANT NEWS: CBDT Extends Deadline till June 30 for businesses to claim lower tax rate, Know more here
The CBDT (Central Board of Direct Taxes) announced on Friday that it is extending the last date for businesses and corporates to submit Form 10-IC which is an important document required to avail a lower corporate tax rate of 22%. The CBDT has given extra time to these establishments to submit the form. To avail of this lower tax rate, the businesses have to opt for it by submitting form 10-IC in electronic form before filing the tax returns.
For the income in FY20, the tax returns were to be filed in the assessment year starting 1 April 2020 (AY2020-21). The option once exercised, will apply for subsequent years as well.
However, the businesses that claimed for a lower rate in their tax returns have not filed the specified form (Form 10-IC) separately, hence the CBDT is asking for this form now. In their statement, the CBDT said that the failure to submit this form will lead to the denial of the 22% concession tax rate. Hence, they are giving extra time to businesses to submit the form.
The I-T Department had in 2019 introduced forms 10-IC and 10-ID to allow corporates to avail a lower tax rate, applicable for income earned in FY20 onwards. However, the new deadline to submit the form is June 30, the CBDT said in a statement.
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