Form 10-ID Format — Section 115BAB Concessional Tax Rate for New Manufacturing Companies

The Form 10-ID exercise-of-option report under Section 115BAB — the 15% concessional rate for new domestic manufacturing companies set up and registered on or after 1 October 2019 and commencing manufacturing by the prescribed date.

Free · CORAA original — SA-aligned

Updated 28 Jul 2026

Statutory basis

Section 115BAB(7)

Rate

15% + applicable surcharge/cess, no MAT applicability

Eligibility window

Set up/registered on/after 1 Oct 2019, manufacturing by the prescribed date

Companion

Form 10-IC — general concessional rate, Section 115BAA

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Your firm — letterhead

Appears at the top of the document as the audit firm letterhead.

Audit firm name

Audit firm address

Used as the letterhead block.

Engagement partner

ICAI membership no.

Firm registration no.(optional)

Engagement details

The client and period this document is for.

Name of assessee

PAN

Address of assessee

Status

Previous year ended

Assessment Year

GSTIN (if registered)(optional)

Date of report

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Form 10-ID Format — Section 115BAB Concessional Tax Rate for New Manufacturing Companies

31 July 2026

FORM No. 10-ID

Application for exercise of option under sub-section (7) of section 115BAB of the Income-tax Act, 1961.

We report that {{client_name}} (PAN: {{client_pan}}), a domestic company, has exercised the option to be assessed under Section 115BAB of the Income-tax Act, 1961 for Assessment Year {{assessment_year}} and subsequent assessment years.

Conditions verified

The company was set up and registered on or after 1 October 2019, and has commenced manufacturing or production on or before the date prescribed under Section 115BAB(2)(a).
The company is not formed by splitting up or reconstruction of a business already in existence (other than as permitted under Section 33B), and does not use previously used plant and machinery beyond the permitted threshold, or a previously used building as a hotel/convention centre (other than as specifically permitted).
The company is engaged in the business of manufacture or production of an article or thing, and research or distribution related to such article/thing, and is not engaged in any of the businesses specifically excluded under Section 115BAB(2)(b).
Total income has been computed without claiming the deductions/incentives excluded under Section 115BAA(2)(a)/(b) (as applied by cross-reference), and without set-off of any brought-forward loss or unabsorbed depreciation attributable to those deductions.

This form is required to be furnished electronically on or before the due date specified under Section 139(1) for furnishing the first return of income for which the option is exercised.

For {{firm_name}}

Chartered Accountants

Firm Registration No.:

_______________________________

Partner

Membership No.: {{icai_membership_no}}

UDIN: ____________________

Place: ____________________

Date: 31 July 2026

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What’s inside

An excerpt from the template.

FORM No. 10-ID

Application for exercise of option under sub-section (7) of section 115BAB of the Income-tax Act, 1961.

We report that ___ (PAN: ___), a domestic company, has exercised the option to be assessed under Section 115BAB of the Income-tax Act, 1961 for Assessment Year ___ and subsequent assessment years.

Conditions verified

↑ Excerpt only — the full template is what you download as Word

About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

How is Section 115BAB different from Section 115BAA?

Section 115BAA (15% via Form 10-IC — actually 22%, see that template) is available to any domestic company. Section 115BAB offers an even lower 15% rate, but only to NEW domestic manufacturing companies meeting specific set-up-date, registration-date, and manufacturing-commencement conditions — it is a narrower, incentive-linked regime rather than a general opt-in.

What manufacturing-commencement deadline applies for Section 115BAB eligibility?

The company must commence manufacturing or production on or before the date prescribed in Section 115BAB(2)(a) — this deadline has been extended by amendment in the past, so verify the currently applicable date before certifying eligibility; a company that misses the deadline cannot use Section 115BAB even if every other condition is met.

Are there restrictions on using second-hand plant and machinery under Section 115BAB?

Yes — the company must generally not use plant and machinery previously used for any purpose, subject to a permitted threshold for previously-used machinery (commonly discussed as up to 20% of total plant and machinery value, subject to conditions) and specific carve-outs (e.g. machinery imported into India that was never used in India before). Verify the exact current threshold and conditions before relying on this exception.

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