Section 115BAA option exercised in Form No.10IC, Income Tax

[Himatlal Pandit]

One of our company clients having turnover below ₹ 400 cr. , has exercised option u/s.115BAA (22% Income tax rate) for A.Y.2020-21 in form no.10IC. Once option exercised for the particular year can it be withdrawn by the Assessee Company and to get to be assessed under First Schedule to the Finance Act as per old Provision for claiming additional depreciation and MAT Credit u/s.115JAA? Company having turnover below ₹ 400 cr. wants to pay tax under normal provision of the act i.e income tax rate @ 25% or once it exercised option u/s.115BAA then it can not pay tax under normal provisions. Please Explain.

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

The second proviso to section 115BAA (5) provides that once the option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year.

[CASusheel Gupta]

The option once exercised cannot be withdrawn, but the option shall automatically become invalid if you violate any of the condition mentioned in sub section (2).

See if you are able to violate any of them .

CA Susheel Gupta