ITR-6 AY 2026–27 Election Evidence: Forms 10-IB, 10-IC and 10-ID, Prior Options and Deadline Controls

Online income tax return preparation with laptop

An existing valid option is not a fresh annual application

For FY 2025–26 / AY 2026–27, first establish whether a valid corporate lower-rate option already continues. A company with a valid continuing section 115BAA election ordinarily reports that historical election in ITR-6; it does not file a fresh Form 10-IC annually merely to renew the rate. Where a new election is legally required and available, filing the return with a lower-rate selection does not replace the prescribed form. This article is an election-evidence workflow, separate from calculating which regime is cheaper. It uses the Income-tax Act, 1961 and the AY-specific form checked on 27 October 2026. Income-tax Act, 1961: sections 115BA(4), 115BAA(5) and 115BAB(7).

Match the form to the statutory route

Form 10-IB implements section 115BA(4), the distinct qualifying manufacturing-company 25% option, governed by rule 21AD. Form 10-IC implements section 115BAA(5), the 22% option subject to its conditions. Form 10-ID implements section 115BAB(7), the qualifying new-manufacturing 15% route. The section 115BA and 115BAB options are tied to the due date of the first return required under their respective provisions; 115BAA can be elected for an eligible later year by that year’s deadline. Ordinary turnover-based 25% taxation does not become a Form 10-IB election simply because the percentage is the same. Income-tax Act, 1961: sections 115BA(4), 115BAA(5) and 115BAB(7).

Build a permanent option register before preparing this year’s return

Retain PAN, legal company name, regime, first effective AY, relevant previous year, form number, filing date/time, acknowledgement number, verification status and a copy of the submitted form. Retain any withdrawal of a 115BA option when moving to 115BAA, and any relevant order or condonation decision. Reconcile the permanent register to the previous ITR, processed result and current company status. A saved draft, payment challan or spreadsheet saying “22%” is not proof of a submitted election. A historical acknowledgement also does not establish that every continuing eligibility condition remains satisfied.

Determine the election deadline from the applicable taxpayer class

The option provisions link to section 139(1). For the class covered by Circular 07/2026 dated 28 September 2026, the original 31 October 2026 return deadline is extended to 21 November 2026; a new qualifying election linked to that due date should be completed by that date. The corresponding audit specified date is 21 October, a different deadline. Companies required to furnish a section 92E report remain in the separate 30 November return category unless an applicable later order changes it. Do not use the actual date of a belated return as a fresh election deadline, or assume an extension for one class protects another. Recheck current official notices before filing. Circular 07/2026: specified return and audit extensions.

Use current statutory conditions where a portal help page is stale

Section 115BAB requires incorporation on or after 1 October 2019 and manufacturing/production commencement on or before 31 March 2024, with the further business, machinery, building and computation conditions. The linked Form 10-ID help manual retains older 31 March 2023 wording in parts of its prerequisites; use it for the portal process, not to override the amended statutory cut-off. Most existing eligible manufacturers should be checking a prior valid first-return election in this season. Do not advertise fresh 10-ID eligibility in AY 2026–27 merely because the form is visible in the portal. Income-tax Act, 1961: sections 115BA(4), 115BAA(5) and 115BAB(7).

Complete and prove the electronic submission

For a new valid 10-IC election, the official manual uses e-File → Income Tax Forms → File Income Tax Forms, selection of Form 10-IC and the relevant year. Confirm Assessing Officer and basic company details, business sector, IFSC information and prior 115BA option information, then complete the statutory declarations and verification. The 10-ID manual similarly covers Assessing Officer details, company/manufacturing information and verification. Use an authorised signatory and valid DSC as applicable, complete submission and retain the acknowledgement and filed-form copy. Verify status under filed forms; a success screen without the corresponding final record should be investigated. Official Form 10-IC filing manual.

Carry the evidence into the precise ITR-6 field

Part A-GEN filing-status item (e) asks whether the company has already opted under 115BA/115BAA/115BAB and, if so, its first AY, form filing date and acknowledgement. If it has not, the next question asks whether it is opting this year and requests the new form details. Enter historical details where appropriate rather than labelling an old election as a fresh current-year form. The Department’s older ITR troubleshooting guidance also distinguishes first-time filing from entering correct details of an already filed form; the current AY form supplies the operative field structure. Never invent an acknowledgement to clear validation. AY 2026–27 ITR-6 Part A-GEN filing-status item (e).

Post the consequences before validating the return

Under 115BAA, identify deductions prohibited by subsection (2), the attributable portion of brought-forward loss/depreciation, ordinary depreciation that remains allowable, permitted 80JJAA/80M claims and the special IFSC 80LA rule where relevant. Do not claim a general FY 2025–26 WDV uplift by copying the special AY 2020–21 transition proviso. MAT and MATC are excluded for 115BAA/115BAB under the AY validation rules; 115BA alone does not have that exclusion. Once a 115BAA or 115BAB option is exercised it cannot simply be withdrawn next year; a condition failure has statutory consequences. A move from 115BA to 115BAA is specifically permitted, with the necessary new option evidence. AY 2026–27 regime and MAT/MATC validations.

A missing or late form needs a legal remedy, not another checkbox

If no valid prior election exists and a required new form was missed, preserve the facts and determine the actual available relief for that AY and form. Historic condonation circulars are not a standing blanket extension for AY 2026–27. A grievance ticket documents a technical problem but is not itself a condonation order. Correct an erroneous return through the legally available route; distinguish an incorrect acknowledgement entry from the absence of a valid election. Do not promise automatic 30% recomputation or a guaranteed demand: the applicable normal rate, income base, MAT, credits and processing decision determine the actual result.

Applicable primary references

Income-tax Act, 1961: sections 115BA(4), 115BAA(5) and 115BAB(7) Official Form 10-IC filing manual Official Form 10-ID filing manual; note older cut-off text Official Form 10-IB AY 2026–27 ITR-6 Part A-GEN filing-status item (e) Circular 07/2026: specified return and audit extensions AY 2026–27 regime and MAT/MATC validations Department troubleshooting: first option versus already filed form

Six worked illustrations

All facts and amounts below are fictional. Assumptions describe the model, not additional statutory rules. Tax figures show the computation stage; the final net payable or refund is rounded under section 288B to the nearest ₹10 after all applicable adjustments.

Illustrative example 1: Continuing 10-IC option

A company has a valid 115BAA election effective from AY 2022–23, still satisfies its conditions and has FY 2025–26 ordinary taxable income ₹50,00,000. Basic tax ₹11,00,000, surcharge ₹1,10,000 and cess ₹48,400 total ₹12,58,400. It reports the historical election details; a duplicate annual form is not what creates this tax treatment.

Illustrative example 2: Attribute the opening losses

Before a new valid 115BAA election, the company proves opening losses/depreciation ₹6,00,000, of which ₹4,00,000 is attributable to prohibited incentives and ₹2,00,000 otherwise eligible. With ordinary income ₹30,00,000 before that eligible set-off, the model base is ₹28,00,000; 22% tax ₹6,16,000 plus surcharge ₹61,600 and cess ₹27,104 gives computation-stage tax ₹7,04,704. If this were the final net amount payable with no other adjustments, section 288B rounding gives ₹7,04,700. The ₹4,00,000 barred portion is not retained for a later reversal of the election.

Illustrative example 3: Election cost with MAT credit

Assume normal taxable income and a valid 115BAA alternative base both ₹80,00,000, normal 25% tax with cess ₹20,80,000, MAT ₹15,60,000 and surviving MAT credit ₹9,00,000. Normal-regime utilisation is limited to ₹5,20,000, leaving tax ₹15,60,000 and credit ₹3,80,000. A 115BAA election gives ₹20,13,440 without that credit: ₹4,53,440 more current tax. Future-law modelling is needed before deciding to defer or elect.

Illustrative example 4: Missing election is not cured by the tax calculation

Assume a company without a prior valid option misses its applicable new 10-IC deadline and no relief is obtained. On a ₹60,00,000 identical ordinary base, normal 25% plus cess tax is ₹15,60,000, while the unestablished 115BAA figure would be ₹15,10,080. The model difference is ₹49,920, not an automatic 30% demand. This assumes no MAT uplift, other deductions or credits; the actual legal and processing outcome must be established.

Illustrative example 5: Permitted move from 115BA

An existing valid 115BA company considers a lawful 115BAA election. With identical ₹40,00,000 ordinary bases and MAT below normal tax, 25% plus cess gives ₹10,40,000; 22% plus 10% surcharge and cess gives ₹10,06,720. Difference ₹33,280 does not remove the need for the new 10-IC election and correct prior-115BA information; a new annual 10-IB does not implement the switch.

Illustrative example 6: Machinery evidence for a historic 10-ID file

Assume all other 115BAB conditions and the manufacturing commencement cut-off were met. Previously used machinery ₹18,00,000 within total machinery ₹1,00,00,000 is 18%, within the statutory not-more-than-20% test. A different file with ₹22,00,000 previously used within the same total is 22%, outside that deeming relaxation, unless an applicable statutory exclusion changes the classification. These ratios support an eligibility review, not a fresh 2026 election or a waiver of other conditions.

Ten-step verification table

Step	Action	Evidence
1	Find the prior option	Permanent form register and preceding return.
2	Identify the correct form	Section 115BA/115BAA/115BAB and legally available route.
3	Test first-return restrictions	Incorporation, commencement and first required return evidence.
4	Confirm the current deadline	Section 139(1) category and applicable extension.
5	Model restrictions before electing	Deductions, attributable losses/depreciation and MAT credit.
6	Prepare the electronic form	Company, sector, IFSC and prior-option facts.
7	Complete verification and submission	Authorised signatory, valid DSC and final filing status.
8	Archive proof	Submitted form, acknowledgement, first effective AY and any order.
9	Match Part A-GEN item (e)	Existing-versus-new answer, date and acknowledgement.
10	Validate consequential schedules	VI-A, loss/UD, MAT/MATC and Part B-TTI in saved return.

Sixteen practitioner FAQs

1. Does every company need a new option form this year?

No. First determine whether a valid continuing option exists and whether the current conditions remain satisfied.

2. Is selecting 115BAA in the return sufficient for a first election?

No. The prescribed election form and statutory timing requirements are separate.

3. Why is a normal 25% company different from a 115BA company?

The former can arise under the annual turnover-based rate; the latter is a separate conditional manufacturing election.

4. Can 10-IC first be filed after several years under normal tax?

Yes, if 115BAA is legally available for the chosen year and the election is made by its applicable section 139(1) due date.

5. Can the same later-year flexibility be assumed for 10-IB or 10-ID?

No. Their governing provisions link to the first return; establish that requirement from the company’s actual history.

6. Which AY should an existing option holder enter?

The first effective AY of the actual option, with the original form filing date and acknowledgement requested in Part A-GEN.

7. Does an extended audit date determine the 10-IC deadline?

The option links to the section 139(1) return due date; do not substitute the separate specified audit date.

8. Does Circular 07/2026 make every company’s return due 21 November?

No. It addresses the stated serial-2 taxpayer class; the section 92E category must be considered separately.

9. What if the 10-ID manual still says March 2023?

Use the current statutory March 2024 manufacturing commencement cut-off; the older help text is not an amendment.

10. Does a draft saved before the deadline prove election?

No. Preserve evidence of completed submission and verification, not merely draft creation.

11. Should a missing acknowledgement be guessed from the prior ITR?

No. Retrieve the filed-form record and resolve any mismatch; do not fabricate data.

12. Can an existing 115BA option be replaced by 115BAA?

The statute specifically permits the move, but the new option and prior-option information must be correctly completed.

13. Are all earlier losses lost under 115BAA?

Only the restricted attributable components fall under that specific bar; test the remaining loss under its own conditions.

14. Can a company uplift WDV in FY 2025–26 using the original transition proviso?

Do not generalise the special AY 2020–21 WDV provision to a fresh later-year election.

15. Does a helpdesk complaint cure a late form?

No. It may support the facts; legal relief depends on the applicable provision, order or valid condonation route.

16. Does correcting an acknowledgement field mean a fresh annual option?

No. Correct reporting of an existing valid election and making a new statutory election are different acts.

Conclusion

Check whether a corporate option form is newly required or already effective, then reconcile election evidence, deadlines and consequences to AY 2026–27 ITR-6.