CBDT notifies Form 10-IFA for exercise of option u/s 115BAE by co-operative societies

CBDT notifies Form 10-IFA for exercise of option u/s 115BAE by new manufacturing co-operative societies

The Finance Act, 2023, w.e.f. 1-4-2024 has inserted section 115BAE to provide for tax @ 15 percent on income of certain new manufacturing co-operative societies subject to fulfillment of prescribed conditions. The assessee, in order to attract the provisions of section 115BAE must exercise an option to this effect in prescribed manner on or before the due date specified under sub-section (1) of section 139.

The CBDT has now inserted a new rule namely Rule 21AHA providing for the manner and form 10-IFA for exercise of option under sub-section (5) of section 115BAE.

(Department of Revenue)

Notification No. 83/2023

New Delhi, the 29th September, 2023


G.S.R.702(E).—In exercise of the powers conferred by sub-section (5) of section 115BAE, read with section 295 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. Short title and commencement.—(1) These rules may be called the Income-tax (Twenty-Third Amendment) Rules, 2023

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 21AH, the following rule 21AHA shall be inserted, namely:–

21AHA. Exercise of option under sub-section (5) of section 115BAE. (1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAE by a person, being a co-operative
society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be in Form No. 10-IFA.

(2) The option in Form No. 10-IFA 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 No. 10-IFA;

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

(iii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.”

3. In the principal rules, in the APPENDIX II, after Form No. 10-IF, the following Form shall be inserted,

[See sub-rule (1) of rule 21AHA]
Application for exercise of option under sub-section (5) of section 115BAE of the Income-tax
Act, 1961

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