Section 115BAA option exercised in Form No.10IC

[Himatlal Pandit]

One of our company clients having turnover below ₹ 400 cr. , has exercised option u/s.115BAA (22% Income tax rate) for A.Y.2020-21 in form no.10IC. Once option exercised for the particular year can it be withdrawn by the Assessee Company and to get to be assessed under First Schedule to the Finance Act as per old Provision for claiming additional depreciation and MAT Credit u/s.115JAA? Company having turnover below ₹ 400 cr. wants to pay tax under normal provision of the act i.e income tax rate @ 25% or once it exercised option u/s.115BAA then it can not pay tax under normal provisions. Please Explain.

AI Summary

Company Cannot Withdraw 22% Tax Option Under Section 115BAA Once Exercised for 2020-21 Assessment Year A company with a turnover below 400 crore exercised the option under Section 115BAA for a 22% income tax rate for the assessment year 2020-21 using Form No. 10IC. The company inquired if it could withdraw this option to be assessed under the old provisions for additional depreciation and MAT credit, which would allow a 25% tax rate. Responses indicated that once the option under Section 115BAA is exercised, it cannot be withdrawn for the same or any other previous year unless conditions in subsection (2) are violated, which would automatically invalidate the option.