🌟 CBDT Circular on Condonation of Delay for Filing Form 10-IC/10-ID
On November 18, 2024, the Central Board of Direct Taxes (CBDT) issued Circular No. 17/2024. This circular addresses the condonation of delays in filing Form 10-IC or Form 10-ID for Assessment Years (AYs) 2020-21, 2021-22, and 2022-23 under Section 119(2)(b) of the Income-tax Act, 1961.
Key Highlights of the Circular
Scope of Condonation
- Authorized Authorities
- Pr. Commissioners/Commissioners of Income Tax (Pr. CsIT/CsIT): Handle delays of up to 365 days.
- Pr. Chief Commissioners/Chief Commissioners/Directors General (Pr. CCsIT/CCsIT/DsGIT): Manage delays exceeding 365 days.
- Conditions for Approval
Authorities must confirm the following:- Taxpayers filed income tax returns for the relevant AY within the Section 139(1) due date.
- The taxpayer opted for taxation under Section 115BAA (Form 10-IC) or Section 115BAB (Form 10-ID) in ITR-6 filings.
- Reasonable grounds caused the delay, resulting in genuine hardship.
- Time Limit
Taxpayers must file applications within three years from the end of the relevant AY. Applications submitted beyond this period will not be considered. - Resolution Timeline
Authorities should ideally resolve applications within six months of submission.
Background and Purpose
The circular aims to alleviate the difficulties taxpayers face due to delays in filing Form 10-IC/10-ID. These forms are crucial for availing concessional tax rates under:
- Section 115BAA: Corporate tax at 22%.
- Section 115BAB: Tax incentives for new manufacturing entities.
Impact on Taxpayers
This initiative allows taxpayers to:
- Rectify delayed filings without forfeiting concessional tax benefits.
- Prevent disputes and avoid penalties.
Tax professionals and entities must act promptly to ensure compliance within the prescribed timelines.
