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May 4, 2017

CBDT 9th Amendment and New Form 10-IB for Startups to Opt Lower Tax Rates

CBDT notifies notification no. 36/2017 dated 2 May 2017 and makes 9th amednment in income tax rules with a new income tax form 10-IB for startups to opt for lower tax rates.

In exercise of the powers conferred by section 295 read with section 115BA of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: -

1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2017.

(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), after rule 21AC, the following rule shall be inserted, namely:-

“21AD. Exercise of option under sub-section (4) of section 115BA. (1) The option to be exercised in accordance with the provisions of sub-section (4) of section 115BA by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2017, shall be in Form No. 10-IB.

(2) The option in Form No. 10-IB referred to in sub-rule (1) shall be furnished electronically either under digital signature or electronic verification code. 

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall-

 (i) specify the procedure for filing of Form referred to in sub-rule (2); 

(ii) specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule(2), for purpose of verification of the person furnishing the form referred to in the said sub- rule; and 

(iii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to Form so furnished.”; 3. In the principal rules, after Form No. 10-IA, the following Form shall be inserted, namely:-
CBDT 9th Amendment and New Form 10-IB for Startups to Opt Lower Tax Rates

Download Form 10-IB
Note 1:
1. This option form should be signed by the principal officer.”
[Notification No. 36/2017/F. No. 370142/7/2017-TPL]
NIRAJ KUMAR, Under Secy. (Tax Policy and Legislation) 

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