In a move to bring greater consistency and clarity to corporate tax filings, the Central Board of Direct Taxes (CBDT) has mandated that companies must now declare their chosen tax regime every assessment year. This annual declaration will apply to all companies eligible to choose between the default tax structure and the concessional regimes under Sections 115BAA or 115BAB. While earlier declarations under Form 10-IC or 10-ID were considered a one-time exercise, the new directive formalizes the need for reconfirmation with every income tax return filing.

Under the revised framework, companies must explicitly state their tax regime choice in Form ITR-6, even if they continue with the previously selected regime. This step ensures that the Income Tax Department has updated and verifiable confirmation of the taxpayer’s intent for each financial year. Failure to disclose or incorrectly report the regime option may result in the application of the default tax rates, loss of concessional benefits, and possible initiation of scrutiny proceedings.

The e-filing portal has been upgraded to include dynamic fields for regime declaration and auto-verification of Form 10-IC/10-ID submissions, making it easier for companies to comply. Tax professionals are advised to cross-check whether their clients’ earlier regime selections are valid and to ensure timely updates before submission deadlines. This annual requirement reflects the government’s broader push for transparent, accurate, and accountable corporate taxation practices, reinforcing procedural discipline without altering the core benefit structure of the available tax regimes.