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Question ID : 44564

Claiming 80IAC when opted for 115BAA

Assessee:- Pvt Ltd Company Date of Inco:- Sept 2019 Filed Return:- AY-20-21, 21-22, 22-23 Tax Rate:- 115BAA i.e. 22% However 10IC filed for AY 21-22 only. Status:- Startup Registration got on Nov 21 80IAC Approval:- 24 Oct 2023 ITR and Tax Audit:- Due date 31/10/23 not yet uploaded Query:- Assessee want to exercise 80IAC for AY 23-24 or AY24-25 onwards. Can he do so? Assessee wasn't aware at the time of filing first year return about start up registration and 80IAC. Mistakely selected tax rate u/s 115BAA. Now assessee wants to get deduction u/s 80IAC. He is ready to file rectification/Updated return with 25% tax rate for AY 21-22 and AY 22-23 and pay differential tax. Need opinion on this.

Posted by ASIF MUJAWAR on Oct 26, 2023

Filed Under DIRECT TAXES

Answer ID : 85210

In my humble opinion, there is no option to revise the tax filed for AY 21-22 and AY 22-23. Also the updated return can only be filed if you have missed to file the return of income. The option here is to revise the return for AY 23-24, if it does fall in the block of 3 years from date of incorporation of the eligible start up under section 80IAC.

Posted by ABHISHEK RATHORE on Nov 14, 2023