It all started with concessional rate of tax for corporates in the form of Section 115BAA and 115BAB for which Form 10-IC and 10-ID were notified and was later on carried forward to Individuals and co-operative societies in the form of section 115BAC and 115BAD respectively.
As of now only the forms have been notified by way of amendment to Income tax rules where clarification was also provided to depreciation rules in above sections.
It is important to note that only the forms are notified and same are still not available for filing on e-filing website as filing would be needed before filing ITR for FY 2020-21 and hence still there is time for that.
Rule 21AG has been inserted which notifies Form 10-IE for opting concessional tax rate under section 115BAC for individuals and HUF and it says that same needs to be filed electronically.
Since 115BAC can be accepted and withdrawn once voluntarily by the assessee excepted the year in which it is accepted where he is earning income from business or profession which was not there in section 115BAA and 115BAB. Thus, there are two options in this form either to exercise or withdraw the option and hence this form would be used for both the purpose.
Also, assessee who is earning income other than business or profession can opt in and opt out of this provision every year.
Rest all declaration are same as in other forms i.e. 10-IC and 10-ID where declaration of assessee that he is aware of all the provisions of the section.
Rule 21AH has been inserted which notifies Form 10-IF for opting concessional tax rate under section 115BAD for co-operative society and it says that same needs to be filed electronically.
Also, this option once exercised cannot be withdrawn subsequently.
To read full notification CLICK HERE.
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