Things To Must Know About Form 10-IB in Income Tax

What is Section 115BA of the Income-tax Act, 1961?

Section 115BA of the Income-tax Act, 1961, is a special provision that allows domestic companies to opt for a lower tax rate of 25% subject to certain conditions.

• The company was incorporated and registered on or after the 1st day of March 2016
• The company should not be engaged in any business other than the manufacture or production of articles or things and research and distribution of such articles or things manufactured or produced.
• The total Income of the company has been calculated without claiming,
  • Deductions for setting up units in Special Economic Zones (SEZs) [Section 10AA]
  • Depreciation under Section 32 other than Section 32(1)(iia)
  • Deductions under section Section 33AB, Section 33ABA
  • Deductions for spending money under [Section 35(1)(ii), Section 35(1)(iia), Section 35(1)(iii), Section 35(2AA), Section 35(2AB), Section 35AC, Section 35AD, Section 35CCC, Section 35CCD]
  • Deductions for earning income from certain sources under any provision of Chapter VI-A, C
  • Deductions for employing new workers under Section 80JJAA
• The option is exercised in the prescribed manner on or before the final date of filing the first return of the income.

Once the option has been exercised for any past year, it cannot be thereafter withdrawn for the same or any other previous year.

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How to fill out Form No. 10 IB?

Form 10 income tax IB is a declaration form for claiming lower tax rates under section 115BA of the Income Tax Act, 1961. To fill out this form online, follow these steps:

• Log in to the e-portal of the Income Tax Department using your user ID and password.
• Go to e-File > Income Tax Forms and select Form No. 10 IB from the drop-down menu.
• Fill in the required details such as PAN, company name, registered address, Date of incorporation, and nature or activities of the company.
• Click on Preview and Submit to verify the information entered.
• You will receive an acknowledgment number and a confirmation email

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How is Form No. 10-IB different from Form No. 10-B?

The registration of a religious charity, trust, or institution is covered by Form No. 10-B. In contrast, new firms, individuals, or other entities who wish to request a tax rate reduction must complete Form 10-IB, which is subsequently applied at a rate of 25% of the total income, provided certain requirements are met.

• Every domestic corporation has the option to pay income tax upon satisfaction of specific requirements under section 115BA. The business that wishes to choose this rate of tax must do so in the prescribed manner on or before the deadline for filing its section 139 income return (1).

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