Form 10-IC of Income Tax Act

Let us learn more about Form 10-IC of the Income Tax Act.

What is Form 10-IC?

Rule 21AE (1) of the Income Tax Rules provides a way for a domestic company to avail of lower tax rates. As per the rule, a company can file Form 10-IC to get charged 22% under the Income Tax Act, 1961. 

Other details of Form 10-IC:

• Upon filing Form 10-IC, the company will get all the benefits available under Section 115BAA. 

• Under Sec 115BAA, a company will not be charged with the Minimum Alternate Tax (MAT) of a 15% tax rate.

• Form no. 10-IC is to be submitted before or by the due date of furnishing the ITR returns of the previous year.

• Once opting for Section 115BAA, the company cannot switch back to the normal tax slab rates in subsequent assessment years.

How To Download Form 10-IC?

An individual can easily access Form 10-IC online through the income tax e-filing portal. 

Let us go through the steps below to get Form no. 10-IC of the IT Act, 1961:

Step 1: Log in to the Income Tax Department portal using the credentials of the assessee

Step 2: Click on “e-File” from the top bar menu

Step 3: Choose “Income Tax Forms” from the drop-down options and then click on “File Income Tax Forms”

Step 4: Click on “Form 10-IC”. The page “Application for the exercise of option under section 115BAA (5) of the Income Tax Act, 1961” will open.

Step 5: Select the appropriate assessment year and click on “Continue” to download the file and submit it with due information.

Note: Form 10-IC cannot be filed in physical/ offline mode. The digitally signed Form 10-IC of the Income Tax Act must be only submitted through the income tax portal.

How To File Form 10-IC?

The Principal Officer of the company is the authority to duly verify and submit Form 10-IC to the IT Department. 

Let us learn the process of filing Form 10-IC with the Income Tax Portal:

Step 1: Form 10-IC consists of the following four major sections:

• Assessing Officer

• Basic information

• Additional Information

• Verification

Step 2: Fill in the details of the Assessing Officer in the first section:

• Name

• Name & Address of the company

• The PAN card number of the company

• Assessment Year in which opting for benefits under Sec 115BAA

Step 3: In the second section, fill in the basic information about the company:

• Name of the company

• Whether a domestic company or not

• PAN card number

• Registered Address of the company

• Date of incorporation of the company

• Nature of business activities of the company

Step 4: Fill in the following additional details:

• Details of any units in the International Financial Services Centre (IFSC) under Sec 80LA(1A)

• If option under Sec 115BA(4) is exercised in form 10-IB

Step 5: At last, fill in all the relevant details, and agree to the terms and conditions

Step 6: Verify all the details by clicking the preview

Step 7: Click on “Proceed to e-verify” the Form 10-IC and press “Yes”

Step 8: The Principal Officer must digitally sign Form 10-IC to complete the form submission.

Note: Upon submission of the form, save the message with Transaction ID and Acknowledgement Receipt Number for your future reference.

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