{"id":21208,"date":"2020-12-07T15:03:55","date_gmt":"2020-12-07T09:33:55","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21208"},"modified":"2020-12-07T15:04:56","modified_gmt":"2020-12-07T09:34:56","slug":"form-10-ib-in-income-tax","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/form-10-ib-in-income-tax\/","title":{"rendered":"Things you Must Know all about Form 10-IB in Income Tax"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Central Board of Direct Taxes issued Form 10-IB for Start-Ups allowing them to choose for a more economical tax rate. The notification supplements Rule 21AD to the <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>Income Tax<\/strong><\/a> laws that provide for an application of option under sub-section 115BA (4) of Income Tax Act. <\/p>\n\n\n\n<p>This can be mention in Form No. 10-IB such as a report declaring the right to use the requirements under sub-section (4) of section 115BA by a private company for any preceding year related to the estimation year starting on or after the 1st April 2017. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/form-10-ib-in-income-tax\/#Taxation_Amendment_Ordinance_Act_2019\" >Taxation (Amendment) Ordinance Act, 2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/form-10-ib-in-income-tax\/#What_is_Form_10-IB_in_Income_Tax\" >What is Form 10-IB in Income Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/form-10-ib-in-income-tax\/#When_one_should_File_Form_10\" >When one should File Form 10?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/form-10-ib-in-income-tax\/#Income-tax_9th_Amendment_Rules_2017\" >Income-tax (9th Amendment) Rules, 2017<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/form-10-ib-in-income-tax\/#Draft_of_Form_No_10-IB\" >Draft of Form No. 10-IB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/form-10-ib-in-income-tax\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taxation_Amendment_Ordinance_Act_2019\"><\/span>Taxation (Amendment) Ordinance Act, 2019<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Section 115BAA, Section 115BAB<\/em><\/strong><em> were inserted in Income Tax Act, 1961, by the <\/em><strong><em>Finance Minister<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Minister_of_Finance_(India)\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><em> in the <\/em><strong><em>Union Budget 2020<\/em><\/strong><em>. <\/em><\/p>\n\n\n\n<ul><li>These sections are inserted in order to give the benefit of a reduced tax rate of domestic companies.<\/li><li>While all existing domestic companies have been provided an option to pay tax at the <strong><em>concessional rate of 22%,<\/em><\/strong> new domestic companies set up on or after <strong><em>1st Oct 2019, and commencing manufacturing before 31st Mar 2023 <\/em><\/strong>would have an option to <strong><em>pay tax at 15%.<\/em><\/strong> <\/li><li>However, a reduced tax rate comes with the consequential surrender of specified deductions and incentives. No <strong><em>minimum alternate tax<\/em><\/strong> (MAT) will be applicable in either of the options. Companies which do not opt for a concessional tax rate shall continue to enjoy the benefit of such specified deductions\/incentives, be subject to <strong><em>MAT at 15%.<\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/new-income-tax-returns-forms-2020-21\/\">New Income Tax Returns Forms: CBDT Notified FY 2019-20\/ AY 2020-21<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Section 115BA (Existing amended provisions)<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"341\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Section-115BA-Existing-amended-provisions-1024x341.png\" alt=\"Section 115BA (Existing amended provisions)\" class=\"wp-image-21221\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Section-115BA-Existing-amended-provisions-1024x341.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Section-115BA-Existing-amended-provisions-300x100.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Section-115BA-Existing-amended-provisions-768x256.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Section-115BA-Existing-amended-provisions.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Form_10-IB_in_Income_Tax\"><\/span>What is Form 10-IB in Income Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form 10-IB must contain the Information about the choice to apply under terms of <strong><em>sub-section (4) of division 115BA<\/em><\/strong> of Income Tax Act. It also relates to the assessment year commencing on or after the 1st day of April 2017, which must be mentioned in <strong><em>Form No. 10-IB<\/em><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_one_should_File_Form_10\"><\/span>When one should File Form 10?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under <strong><em>Section 12A<\/em><\/strong> Income-tax Act, 1961, <strong><em>Form 10<\/em><\/strong> is produce regarding an appeal for an enrollment of the generous or moral trust of company. Therefore, one can register online in Form 10 by simply attending the E-filing website of an income tax department.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Income-tax_9th_Amendment_Rules_2017\"><\/span>Income-tax (9th Amendment) Rules, 2017<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The power conferred by <strong><em>section 295 read with section 115BA<\/em><\/strong>\nof the Income-tax Act, 1961, Central Board of Direct Taxes makes the following\nrules to amend further the Income-tax Rules, 1962, namely: \u2013<\/p>\n\n\n\n<ul><li>In Income-tax Rules, 1962 (hereafter referred to as the principal rules), after <strong><em>rule 21AC<\/em><\/strong>, the following rule has been inserted as follows:<\/li><\/ul>\n\n\n\n<p>&#8220;21AD states that- Exercise of option under <strong><em>sub-section\n(4) of section 115BA<\/em><\/strong>. The option to be exercised by a company in\naccordance with the provisions of sub-section (4) of section 115BA for any\nprevious year relevant to the assessment year beginning on or after the 1st day\nof April, 2017, has to mention details in Form No. 10-IB.<\/p>\n\n\n\n<ul><li>The option in <strong><em>the Form No. 10-IB referred to in\nsub-rule (1)<\/em><\/strong> must be furnished electronically either under electronic\nverification code or digital signature.<\/li><\/ul>\n\n\n\n<ul><li>A Principal Director General of Income-tax System or Director General of Income-tax System must\u2011<\/li><\/ul>\n\n\n\n<ol><li>Specify a procedure for filing of Form referred in <strong><em>sub-rule (2)<\/em><\/strong><\/li><li>Specify data structure, standards and manner of generation of electronic verification code, referred in sub-rule(2), for purpose of verification of a person furnishing the form referred to in the said sub- rule.<\/li><li>Be responsible for formulating &amp; implementing appropriate security, archival &amp; retrieval policies in the Form so furnished.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Draft_of_Form_No_10-IB\"><\/span>Draft of Form No. 10-IB<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p style=\"text-align:center\"><strong>FORM No. 10-IB<\/strong><\/p>\n\n\n\n<p style=\"text-align:center\"><strong>[Rule 21AD, Sub-Rule (1)]<\/strong><\/p>\n\n\n\n<p>Application for exercise of the option under section 115BA of sub-section (4) of Income Tax Act, 1961<\/p>\n\n\n\n<p>To,<\/p>\n\n\n\n<p>\n\nAssessing Officer,\n\n<\/p>\n\n\n\n<p>Madam\/Sir,<\/p>\n\n\n\n<p>I, \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026. on behalf of [name and registered\naddress of a company exercising the option under section 115BA sub-section (4)]\nhaving (PAN) Permanent Account Number\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.. hereby exercise the option\nreferred to in section 115BA sub-section (4) of Income-tax Act, 1961 for\nprevious year 20\u2026- \u2026\u2026 and subsequent years.<\/p>\n\n\n\n<p>2. The details of the company are mention below<\/p>\n\n\n\n<ul><li>Name of the Company exercising the option under of section 115BA sub-section (4):<\/li><li>Whether this is the Domestic company or not :<\/li><li>PAN number:<\/li><li>Registered Address :<\/li><li>Date of an Incorporation :<\/li><li>Nature of the business or activities of the Company:<\/li><\/ul>\n\n\n\n<p>3. I understand that above option has exercised for any\nprevious year, that cannot be subsequently withdrawn for the same or any other\nprevious year.<\/p>\n\n\n\n<p>4. I do hereby further affirm that conditions stipulated in section 115BA of the Act are and must be satisfied by the company.<\/p>\n\n\n\n<p>Place&#8230;&#8230;&#8230;&#8230;..<\/p>\n\n\n\n<p>Date&#8230;&#8230;&#8230;&#8230;&#8230;<\/p>\n\n\n\n<p style=\"text-align:right\">Yours faithfully,<\/p>\n\n\n\n<p style=\"text-align:right\">Signature of Principal\nOfficer\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n\n\n\n<p style=\"text-align:right\">Name\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n\n\n\n<p style=\"text-align:right\">Designation \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.<\/p>\n\n\n\n<p style=\"text-align:right\">Address\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under section 115BA, every domestic company has the option of paying income tax on fulfilment of certain conditions. The company willing to opt for such rate of tax is required to exercise such option in the prescribed manner on and before the due date for furnishing of its return of income under section 139(1). <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/10-reasons-why-filing-income-tax-return-is-vital-for-you\/\">10 Reasons Why Filing Income Tax Return Is Vital For You<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central Board of Direct Taxes issued Form 10-IB for Start-Ups allowing them to choose for a more economical tax rate. The notification supplements Rule 21AD to the Income Tax laws that provide for an application of option under sub-section 115BA (4) of Income Tax Act. This can be mention in Form No. 10-IB such [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":21222,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[1288],"acf":{"service_id":"403"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":37857,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21208"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21208"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21208\/revisions"}],"predecessor-version":[{"id":21238,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21208\/revisions\/21238"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21222"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}