Form 10 IB Under Section 115BA of the Income Tax Act

• Form 10 IB is an application submitted to the Assessing Officer for filing the Income Tax returns of a domestic company under Section 115BA.
• Sec 115BA of Income Tax Act allows newly set up domestic manufacturing companies to pay income tax at 25%.
• Form 10 IB is to be filed electronically through the Income Tax portal. You can verify this form using your digital signature or an electronic verification code.
• Through this form, you acknowledge that your company is eligible for Sec 115BA and that you cannot withdraw from this option once you choose it.

In 2016, the Government introduced Section 115BA to allow new Indian manufacturing companies to pay income tax at concessional rates. Eligible companies were free to choose between Sec 115BA and the regular income tax regime. Form 10 IB is a way to inform the Income Tax Department that your company has decided to choose Section 115BA of Income Tax Act.

Form 10 IB is an electronic form that you can file through the Income Tax Portal. It is an application to the Assessing Officer to let them know that your company has decided to opt for Section 115BA. Through this form, you also acknowledge that-

• Your company is eligible to be assessed under Sec 115BA
• You would continue to satisfy all the conditions mentioned in this section.
• You understand that you cannot withdraw from this option once you opt for it.

You must verify the form through a digital signature or an electronic verification code (EVC). Also Read: Form 10B: Applicability, Due Date, and Filing Process

Sec 115BA of Income Tax Act allows newly set up domestic manufacturing companies to pay income tax at 25%. Refer to this quick summary of the provisions under this section to understand it better.

Also Read: Form 26AS: A Detailed Guide for Income Tax Return Filing

A company that wishes to file its income tax under Sec 115BA has to meet the following eligibility requirements:

• The company should be a domestic company engaged in manufacturing or production.
• The company should be incorporated on or after 1st March 2016.
• The company shall not claim deductions under the Income Tax Act 1961 such as under section 10AA, section 35AD, section 35CCC, section 35CCD, etc.
• The company has filed the 10IB formbefore the due date of filing the income tax return of the company.

Also Read: Form 27C - All About TCS Declaration Form

If you wish to file the income tax returns of your company under Sec 115BA, you must submit Form 10 IB before filing the return. You can file Form 10 IB on the income tax portal using the following steps.

• Visit the official income tax portal- https://www.incometax.gov.in/iec/foportal/ .
• Log in using your PAN and income tax password. You can click on the 'Forgot Password' button to reset it.
• Open the 'e-file' menu and select 'Income Tax Forms.'
• You will see a list of various income tax forms. Select Form 10 IB.
• Fill in the required details such as the company's name, PAN, date of incorporation, etc. and submit the form.
• Verify the form with your digital signature or through an electronic verification code (EVC).
• You will receive a confirmation of submission on the registered email and mobile number of your company.

Also Read: New Tax Regime Under Section 115BAA for Domestic Companies

Form 10-B is the audit report of a charitable trust, religious trust, or other not-for-profit organisation. This report is filed by the Chartered Accountant who has audited the books of accounts of the entity.
Form 10-IB, is a form to be filed by companies that want  to file their returns under Section 115BA of the Income Tax Act 1961.

Sec 115BA allows start-up manufacturing companies to pay taxes at lower rates. However, you must file Form 10 IB to inform the government about your decision to file returns under Sec 115BA. Once you submit Form 10 IB, your income will be assessed as per the provisions of Sec 115BA. To make this process simple, the government has allowed taxpayers to file this form electronically.