Consequences of Non filing of form 10-IC

[KKGS andCo]

As per Sec 115BAA, Beneficial rate of 22% is eligible only when form 10IC was filed before filing the ITR by a domestic company. If the form is filed for AY 2020-21, the 143(1) passed by the IT authorities consider 30% as the tax rate, though 25% is eligible.

Questions:

1. When was form 10IC made available in the Income tax portal ?

2. Remedial actions, if any for this.

[DR.MARIAPPAN GOVINDARAJAN]

Whether option has been given in this case to avail the benefits under section 115BAA?

[Parneet Hora]

1. 10IC was made available on IT portal well before the original due date of filing return U/s 139(1)

2. We are facing similar situation in one of our client case. We have filed for rectification and appeal against this.

Contact us if you are able to explore any other option.

[Varun Nayak]

One of our client has made the same mistake. It is a curable mistake

the course of action suggested

- First file form 10 IC.

- Reply to the online demand notice

- Then file rectification of mistake under section 154: Mentioning that this is Apparent Record error

[Neel M]

Facing similar issue of Form 10 IC not filed inadvertently. However, the portal does not allow to file form for earlier AY's.

Can any suggest how to file Form 10 IC of earlier year if they have filed.

[P Santra]

Mr. Varun

Thanks for your post.

You have advised to file 10-IC for the AY 2020-2021.

But there is no filing option of 10-IC in income tax portal for the Assessment year 2020-2021. Only option is there to file for the assessment year 2021-2022.

are you advising to file 10-IC for the 2021-2022 before replying of assement itimated for the AY 2020-2021?

Then to reply CPC and File 154 rectification request with the remarks "this is Apparent Record error"

Is there any example to you that CPC is rectifying the assessment for 2020-2021 after filing rectification request as per your valuable advise.

Many assessee are facing same problem.

Please continue your valuable post with latest update in this regard.

Thank you

[Ram Nayak]

Dear Team,

By mistake we have also missed to file form 10IC within due date and filled same subsequently with 3 day delay (after due date of filling return i.e. on 18th Feb). However in our tax audit report it is mentioned that we are opting for 115BAA. Now I understood CPC is considering 30% tax on such return.

We are of opinion since it is procedural error we will get some relaxation. Our intention was very clear it is covered in tax audit report and also return filled with 115BAA without claiming other deduction like 35(2AB), additional depreciation etc.

Is there any way out. Whether any one has got such relaxation please give reference. Please guide.

Regards

Ram

[Om Arora]

This is inadvertent mistake and done by many CAs and Assesses . We all should make representation before Finance Ministry through proper channel for One Time Relaxation .

All details which needs to be filed in Form 10 IC is also incorporated in ITR itself. Further in ITR for AY 2020-21 there was no column for acknowledgement no of Form 10 IC and date of filing of Form 10 IC.

Thanks

[Ram Nayak]

Dear Team,

Any one knows how we can approach Finance minister or CBDT for one time relaxation. This will help many of us and can avoid litigation at individual entity level.

Regards

Ram Nayak

[Om Arora]

Sir

Representation should be made by ICAI. We should approach our Elected members in Central Council / Regional Council for making representation.

Thanks

[AVNISH KHAN]

We are also facing the same problem has any one got the solution or have paid the demand.

[Varun Nayak]

Kindly view the below thread. The publisher of this article is working on getting a solution to this problem by filing application under sec 119. A larger number of application is needed to warrant a relaxation from CBDT.

[Ram Nayak]

Dear All,

Please join below group as suggested by Varun Nayak

https://groups.google.com/g/nonsubmissionof10ic

and below watsup group

https://chat.whatsapp.com/Lmb1kMyrvsh1KOdzy37pF2

[Dhananjay Parikh]

We are facing the same problem of not filing form 10IC but at the time of filing returns 22% is selected and turnover is less than 400 Crores. Intimation was issued by CPC under section 143(1) by considering 30% tax plus surcharge and Cess even though 25% was eligible. Did anyone find any solution to this? Please let us know how to file form 10IC for A.Y 2020-21 and any remedial actions.

AI Summary

Failure to file Form 10IC can lead to denial of concessional corporate tax treatment; file, rectify, or seek administrative relief. Failure to file Form 10IC before filing the return can cause the assessing system to deny the concessional corporate tax rate and generate an adverse intimation; practitioners recommend filing the form if possible, replying to demand notices, seeking rectification as an apparent record error, lodging appeals, and pursuing coordinated administrative representations to obtain relief when portal constraints prevent retrospective filing.