Form 10-IC sheet for CA firms: which company clients can still opt for the 22% rate under section 115BAA for AY 2026-27, by 21 November 2026

Updated 23 Oct 2026 · Disclosure: the white-label calendar linked below is an Unadhi product (₹999/year).

What you get: a ready-to-copy Google Sheet layout with one row per company client that tells you, by formula, where each one stands on the section 115BAA option for AY 2026-27: "Not eligible", "Already opted: cannot withdraw", "Decide by [date]", "File 10-IC (DSC) before the ITR, by [date]", "Filed: quote ack in ITR-6", or "Past due date". It also shows the due date (21 or 30 November), days left, and a warning when the option would cost a deduction you are claiming now. Plus three made-up example rows, a plan to 21 November and a client message. Free, no sign-up.

Short answer (checked 23 Oct 2026): a domestic company can choose to pay tax at 22% (plus surcharge and cess) under section 115BAA of the Income-tax Act, 1961 if it gives up certain deductions. The option counts only if Form 10-IC is filed on or before the section 139(1) due date for the return, it can be filed online only and e-verified with a DSC only, and once used it applies to later years and cannot be withdrawn (Form 10-IC FAQ, user manual). For AY 2026-27, CBDT Circular No. 07/2026 (28 Sep 2026) moved the return due date for Sl. No. 2 of the due-date table (companies and other audit cases without a section 92E report) from 31 October to Saturday 21 November 2026. Companies that must file a transfer-pricing report under section 92E keep Monday 30 November 2026 (return of income page). The circular does not name Form 10-IC, so file well before the date. This is a starting point, not tax advice.

Why this one cannot wait for the return

• The portal checks the date. One prerequisite in the user manual is that the timeline for the section 139(1) return has not lapsed. Do not expect to file it after the due date.
• Late filing means no 22% rate. Section 115BAA(5) says the section does not apply unless the option is exercised by the due date (Taxation Laws (Amendment) Act, 2019). For AY 2020-21, the first year, CBDT condoned late Form 10-IC only on conditions, by a special order (Circular No. 6/2022), which records that failure to file in time "results in denial of concessional rate". Do not plan on a repeat.
• It is one-way. The second proviso to section 115BAA(5): once exercised, the option "cannot be subsequently withdrawn for the same or any other previous year". A company that opts this year is on 115BAA for every later year, so the decision needs the client's sign-off, not just yours.

What the company gives up (section 115BAA(2))

Under the 2019 text, total income is computed:

• without any deduction under section 10AA, section 32(1)(iia) (additional depreciation), 32AD, 33AB, 33ABA, 35(1)(ii), (iia), (iii), 35(2AA), 35(2AB), 35AD, 35CCC, 35CCD, or the Chapter VI-A deductions the section lists (in 2019: heading "C.—Deductions in respect of certain incomes", other than section 80JJAA);
• without set-off of brought-forward loss or depreciation, or section 72A unabsorbed depreciation, that is attributable to those deductions, and that loss or depreciation is treated as fully used (section 115BAA(3));
• with depreciation under section 32 (other than additional depreciation) worked out in the prescribed manner.

The section has been amended since 2019, so read the current section 115BAA(2) on the department's site before you fill column G. Two more points from the 2019 Act: section 115JB (MAT) does not apply to a company that has exercised the 115BAA option (section 115JB(5A)), and if the company had opted for section 115BA, Form 10-IC withdraws that option (the form's "Additional Information" section, user manual 4.3). If the company has MAT credit brought forward (section 115JAA), put it in column I and include it when you compare the two options.

Which due date applies (AY 2026-27)

New manufacturing companies use a different form: Form 10-ID for the 15% rate under section 115BAB, with its own conditions (Form 10-ID FAQ). This sheet covers Form 10-IC only.

Tab "10-IC": one row per company client

O2 (Action):

=IF(B2<>"Yes","Not eligible: 115BAA is for domestic companies",
 IF(OR(C2="115BAA",D2<>""),"Already opted: cannot withdraw. Confirm in ITR-6",
 IF(C2="115BAB","115BAB company: read the 115BAA(5) proviso first",
 IF(M2<>"","Filed: quote ack "&N2&" and file ITR-6 by "&TEXT(F2,"d mmm"),
 IF(TODAY()>F2,"Past due date: too late for AY 2026-27",
 IF(L2="","Decide by "&TEXT(F2-7,"d mmm")&": compare J and K",
 IF(L2="Opt","File 10-IC (DSC) before the ITR, by "&TEXT(F2,"d mmm"),
 "Stay on normal provisions: no form")))))))

Q2 (Check):

=IF(L2<>"Opt","",
 IF(K2>=J2,"Check: 115BAA tax is not lower",
 IF(G2+H2>0,"Check: G and H are lost for good",
 IF(I2>0,"Check: MAT credit in I",
 IF(C2="115BA","Note: this withdraws 115BA","OK")))))

Use conditional formatting on P: red when 7 or fewer days are left and O does not start with "Filed", "Already" or "Not eligible".

Three made-up example rows

How to file it (user manual)

1. Check the director's DSC is registered and valid on the e-filing portal: the form can be e-verified only with a DSC.
2. e-File > Income tax forms > File Income Tax Forms > Form 10-IC, choose AY 2026-27.
3. Confirm the Assessing Officer details, fill Basic Information (sector), Additional Information (IFSC units, any 115BA option) and accept the Verification declaration.
4. Preview, e-verify with DSC, and note the Transaction ID and Acknowledgement Number in columns M and N. There is no offline utility.
5. Then file ITR-6 by the due date in column F.

Plan to 21 November

Client message

"Your company can choose to pay income tax at 22% (plus surcharge and cess) under section 115BAA from AY 2026-27, in exchange for giving up certain deductions and incentives. The choice has to be filed online in Form 10-IC with a director's DSC before [due date], and once made it cannot be withdrawn in any later year. We are comparing your tax under both options. Please confirm by [date] that [director] is available to sign with a DSC, and that the board is ready to decide."

Notes

• Section 115BAA(1) proviso: if the company fails the section 115BAA(2) conditions in a later year, the option becomes invalid from that year, and normal provisions apply.
• From the 2019 Act: a company whose section 115BAB option became invalid for certain conditions may opt for 115BAA (first proviso to section 115BAA(5)).
• Do not quote a tax rate including surcharge from this page. Compute it from the Finance Act for the year.

Related guides

• ITR audit cases: 21 Nov 2026 chase list
• Form 10-IEA sheet: old regime for business clients
• Form 3CEB chase list
• November 2026 due-date chase list

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