Condonation of Delay under Section 119 of Income Tax Act, 1961 for Filing of Form No. 10-IC for Assessment Year 2021-22

Overview

The Central Board of Direct Taxes (CBDT), by exercising its powers under Section 119 of the Income Tax Act, 1961, has provided relaxation in respect of the following compliance requirement.

Earlier, Form 10-IC, in reference to domestic companies exercising the option under Section 115BAA of the Act to apply the lower income tax rate for the Previous Year 2020-21 relevant to Assessment Year 2021-22, was required to be filed on or before the due date for filing the return of income under Section 139(1) of the Act.

Extension for Filing Form 10-IC

To remove the difficulties faced by taxpayers, the new deadline for filing Form 10-IC in reference to Section 115BAA of the Act has been extended to 31st January 2024, subject to satisfaction of the prescribed conditions.

This relief is relevant from a broader taxation advisory services perspective, particularly for companies assessing concessional tax regime applicability and related filing obligations under specialized direct tax advisory services.

Conditions for Availing the Relief

The extended deadline is available only where the following conditions are satisfied:

• The return of income was filed within the due date specified under Section 139(1) of the Act
• The assessee company had opted for Section 115BAA of the Act while filing ITR-6

Compliance Perspective

This relaxation helps address procedural hardship for eligible domestic companies that had already opted for the concessional tax regime but were unable to complete the filing of Form 10-IC within the earlier timeline.

From a compliance standpoint, the update reinforces the importance of:

• Timely exercise of beneficial tax options
• Correct disclosure in return filings
• Alignment between tax positions and prescribed forms

Additional Resources

To further understand the broader framework around direct tax compliance, concessional tax regime filings, and due date-related reliefs, the following resources provide relevant context:

• Extension of time limits for compliances of income tax
• Extension of various income tax due dates by CBDT
• Budget 2020: CBDT introduces concessional tax rates under new income tax regime
• Condonation application cannot be rejected without considering genuine hardship