India’s electronics manufacturing industry is in hyper-growth mode.

Valued at US$ 155 billion in 2024, the sector is projected to more than triple to US$ 500 billion by 2030, growing at a staggering pace of 21.5% annually, according to Niti Aayog.

Right at the heart of this transformation is Dixon Technologies — one of the key players riding this wave of growth.

From humble beginnings as a colour TV maker, Dixon has evolved into a diversified electronics powerhouse, producing everything from mobile phones to consumer durables — and now even eyeing the next big frontier: display manufacturing.

What’s driving this momentum?

• Rising demand from India’s growing middle class
• A massive domestic production push under government initiatives
• And the global China+1 shift, opening new doors for Indian manufacturers

With strong tailwinds and ambitious expansion plans, Dixon is positioning itself as a leader in India’s electronics revolution.

Today, Dixon announced yet another acquisition and a joint venture, further strengthening its position in the industry. Investors cheered this move and the stock price gained 4% reacting to the same.

Dixon Technologies – 1 Year Share Price

Let’s understand the key details of the acquisition and the joint venture before we look at the growth prospects.

Why Dixon Technologies Share Price is Rising

Dixon Technologies share price surged as much as 4% to ₹16,537 in intraday trade today after the company announced that it has signed a binding term sheet to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India).

According to the exchange filing, the acquisition will be carried out through a mix of primary and secondary investments.

The deal is intended to strengthen co-operation in the production, marketing, and distribution of camera and fingerprint modules, with applications spanning mobile phones, IoT devices, and the automotive industry.

Q Tech India operates as a subsidiary of Q Technology (Singapore) and Kunshan Q Technology International, both of which belong to the Q Tech Group.

Q-Tech India clocked about ₹2,400 crore in FY24 revenue. According to Nomura, based on an average realisation of about ₹400 per camera module, this suggests volumes of approximately 50 million units-implying a nearly 10% market share. Nomura expects Dixon’s backing could help Q-Tech India scale to 50–60 million phones over the next few years.

With this acquisition, Dixon has entered into the camera and fingerprint module segment, with applications across mobile handsets, IoT devices, and the automotive sector.

JV With Chinese Company

Along with this acquisition, in a parallel development, Dixon also announced a 74% joint venture with Chongqing Yuhai Precision Manufacturing. 

The JV will focus on manufacturing precision mechanical and metal components for laptops, mobile phones, IoT products, and automotive applications — marking Dixon’s foray into the precision components segment.

Mutual Fund Buying Adds Further Momentum

The acquisition and JV have no doubt fuelled a positive sentiment around the stock. But the stock is also rising as mutual funds are lapping up shares.

According to reports, domestic mutual funds added Rs 4,500 crore worth Dixon Tech shares in the month of June 2025.

Dixon Tech Shareholding Breakup – March 2025

Source: BSE, Trendlyne

What Next?

Dixon Technologies has been on a roll since its IPO seven years ago.

Backed by solid execution and smart expansion, the company has consistently delivered strong financial performance year after year.

Its growth story is closely tied to India’s manufacturing revolution — fueled by the ‘Make in India’ push and rising demand for locally made electronics.

And the numbers speak for themselves.

Dixon Financial Snapshot

Particulars (Rs Cr.)	FY21	FY22	FY23	FY24	FY25
Revenue	6,448	10,697	12,192	17,691	38,860
Operating Profit	292	384	519	705	1,508
Margins (%)	5%	4%	4%	4%	4%
Net Profit	160	190	255	375	1,233

Source: Screener, Company Reports

That’s the power of entering new product categories at the right time — and executing with focus.

With a strong order book from brands like Voltas, Beko, Lloyd, and BPL, the company is ramping up its refrigerator capacity — and has begun exports to Nepal, with plans to enter Sri Lanka and the UAE soon.

It’s also eyeing export growth in smart TVs, including Amazon Fire TV and LG webOS, with momentum expected to pick up from Q1FY26.

Dixon is doubling down on home appliances and lighting, expanding into categories like robotic vacuum cleaners, water purifiers, chimneys, and automatic washing machines for clients like Panasonic, Godrej, and Reliance.

In IT hardware, Dixon is partnering with top global brands like Asus, HP, and Lenovo and building a new laptop facility (1.5 million units), expected to go live by Q4FY25.

And it’s not stopping there.

The company will soon kick off display manufacturing with HKC, while expanding into precision components, camera modules, and battery packs — all high-margin segments.

With these bold moves, Dixon is eyeing a spot among the world’s top 10 EMS (Electronics Manufacturing Services) companies within 5 years.

So yeah, the future looks exciting for Dixon. It remains to be seen whether the company lives up to the hype and delivers a consistent all-round performance.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Introduction

Understanding Tax Benefits on a Second Home Loan

Extending your real estate portfolio with a second house property is a great way to inflation-proof your investment. However, owning a second property brings additional financial commitments, and you may need to consider a home loan. In such cases, the Indian tax regime offers some relief through tax deductions. 

If you’ve taken a loan for your second house, you can claim income tax benefit on the 2nd home loan, both on the interest paid and on principal repayment. 

But how exactly? Read on to find out…

How Second Home Loans Are Treated Under Income Tax Act

As per the Income Tax Act, when you buy a second home using a loan, it is classified as either self-occupied, rented, or vacant. Each of these scenarios affects the two home loan income tax benefits you can claim. For example, rented properties are taxed under “income from house property” with some adjustments allowed, while vacant second homes may attract notional rent tax. 

Let’s break down the tax treatment in each case.

Tax Benefits on Interest Payment for Second Home Loan

Section 24(b) – Deduction on Interest Paid

Interest paid on your second home loan can be claimed as a deduction under Section 24(b) of the Income Tax Act. The income tax benefit on the 2nd home loan under this section depends on whether your property is rented or self-occupied.

If your second home is rented, there is no upper limit; you can claim the entire interest paid during the financial year. If it is self-occupied or vacant, the deduction is capped at ₹2 lakh for all properties combined.

Under the old tax regime, this benefit is available as per Section 24(b). However, if you opt for the new regime, you will not be able to claim this deduction for a self-occupied second home. The benefit continues if the second home is let out.

Limit of Deduction on Interest

For example, say you already pay ₹90,000 per year in interest on your first home loan. If you take a second home loan with ₹1.5 lakh interest paid annually, you can claim a total deduction of ₹2 lakh under the old regime (₹90,000 + ₹1,10,000). Any excess cannot be claimed for self-occupied homes.

For rented second homes, if your second loan’s interest is ₹2.5 lakh per year, you can claim the full ₹2.5 lakh, no cap applies here, whether under old or new regime (only if let-out).

Conditions to Avail Full Deduction

To claim the income tax benefit second home loan under Section 24(b), ensure that:

• The loan is for construction or purchase, not for repairs.
• The construction is completed within 5 years of taking the loan (for self-occupied).
• Proper interest certificates from lenders are kept ready.
• Rental income, if applicable, is declared in your tax filing.

Tax Benefits on Principal Repayment for Second Home Loan

Section 80C – Deduction on Principal Payment

The principal portion of your second home loan EMI is eligible for deduction under Section 80C of the Income Tax Act. You can claim up to ₹1.5 lakh annually under this section. This two home loan income tax benefit on principal is subject to the overall ₹1.5 lakh cap for all Section 80C investments like ELSS, PPF, or life insurance.

This benefit is only available under the old tax regime, not under the new one, whether your second home is self-occupied or rented.

Eligibility for Principal Repayment Deduction

You must ensure:

• The property is registered in your name.
• The loan is taken from a recognised bank or financial institution.
• The property is not sold within 5 years of taking possession—if sold earlier, prior benefits will be reversed.

It is worth noting that the income tax benefit on 2nd home loan principal repayment applies even if the house is vacant or let out, as long as you are in the old regime.

Lock-in Period for Claiming Principal Deduction

Once possession is received, you can claim the principal repayment deduction. However, if you sell the property within 5 years from the financial year of possession, the benefits claimed earlier will be added back to your taxable income in the year of sale.

If you’ve also paid stamp duty and registration fees, you can claim them under Section 80C, within the ₹1.5 lakh cap, in the year they are incurred.

How to Claim Tax Benefits on Second Home Loan

Documents Required for Claiming Tax Deductions

To claim deductions for both interest and principal repayment, you will need:

• Interest certificate from your lender
• Loan statement with EMI breakup
• Completion certificate or possession letter

Filing the Deductions in Income Tax Return

If you could not submit documents to your employer, you can still claim two home loan income tax benefits while filing your Income Tax Return. Use the correct ITR form based on your income sources, including tax on mutual funds, salary, rental income, or capital gains.

Report the home loan interest under “Income from House Property” in the ITR form. Ensure you also claim principal repayment under “Deductions under Chapter VI-A,” Section 80C, if applicable. Plus, if excess TDS was deducted by your employer, you can claim the refund when filing your ITR. 

While filing, it’s also helpful to understand overall tax treatment across your investments, whether related to tax on mutual funds or your home loans, so that there is no mismatch in your tax records.

Important Points to Note

Tax Implications if Second Home is Rented

If the second home is rented, the entire rental income is taxable after deducting property taxes paid and 30% standard deduction on maintenance.

Deemed Rent Concept for Vacant Second Home

If your second home is vacant, the tax department may apply the concept of deemed rent, meaning you need to declare notional rental income based on market rates, which could increase your taxable income.

Impact on Overall Taxable Income

Whether your second home is rented or vacant, it impacts your taxable income. If rental income is high, it may increase your taxable income. On the other hand, interest deductions and other expenses can help lower your tax liability. This is why understanding the right deductions and using exemptions vs deductions wisely is important when planning taxes for multiple properties.

Recent Updates on Tax Benefits for Second Home Loan

Changes Introduced by Union Budget

Recent announcements in Union Budgets have not expanded deductions specifically for second homes. However, with growing emphasis on affordable housing, future benefits may evolve.

Impact of New Tax Regime on Second Home Loan Deductions

Under the new tax regime, deductions under Section 80C and Section 24(b) on second home loans are not allowed. If you wish to claim an income tax benefit on a 2nd home loan, you should opt for the old tax regime. It is also useful to review how TDS in India applies to different sources of income, including rental income, when planning your overall tax strategy.

Conclusion

Maximizing Tax Savings Through Proper Planning of Second Home Loan

With good planning, you can optimise your tax benefits on a second home loan. Keep your documents organised, choose the right tax regime, and declare income accurately. Using stock advisory services or consulting a tax professional can also help align your second home investments with your broader financial goals.

FAQs

1. Can I claim tax benefits on both homes if I have two loans?

Yes, two home loan income tax benefits are allowed, provided you declare the income and meet eligibility conditions under Section 24(b) and Section 80C.

2. What if the second home is self-occupied?

If self-occupied, the interest deduction is limited to ₹2 lakh annually.

3. Can I claim full interest deduction if the second home is vacant?

No, the concept of deemed rent applies to a vacant second home, and deductions are limited.

4. Does the new tax regime impact second home loan deductions?

Yes, second home deductions are not allowed under the new tax regime. You must choose the old tax regime if you want to claim them.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Indian share markets broke their 4-day losing streak as they opened higher on July 15, 2025 following better than expected inflation data. 

Many stocks also followed the positive trend, but amidst a few that stood out was RailTel Corporation. The stock price rose by 4%, propelled by the string of new orders in July 2025. 

Let’s take a detailed look at RailTel, its recent order wins and growth trajectory.

Overview of RailTel Corporation

RailTel Corporation of India, a Navratna CPSE under the Ministry of Railways, is among the country’s largest neutral telecom infrastructure providers. The company was established in 2000 with an aim to modernize Indian Railways’ telecom systems and build a pan-India optic fiber network that could generate additional revenue by serving both government and commercial clients.

As of FY25, RailTel owns over 61,000 route kilometers of optic fiber cable (OFC) and has network coverage across 6,100+ railway stations, reaching deep into both urban and rural regions with over 21,000 km of citywide access. 

Its broadband arm, RailWire, is the 13th largest broadband provider in India and ranks 4th in rural subscriber count, serving a critical role in digital inclusion.

RailTel’s business spans two major verticals:

• Project Services, which now accounts for nearly 60% of revenue (Q1 FY25), includes railway signaling, smart city, ICT infrastructure, and digital connectivity projects.
• Telecom Services, comprising leased lines, tower colocation, dark fiber, data centers, and VPN services.

The company has delivered national projects like BharatNet and the National Knowledge Network, and continues to partner with entities like the Ministry of Railways, ONGC, SBI, SECL, and even global players like Google and Amazon.

With increasing demand for ICT infrastructure and consistent support from Indian Railways, RailTel’s growing project pipeline and order inflows are central to its expansion strategy.

Orderbook of RailTel Corporation

1. July 2025 Orderbook Updates:

Client	Order Value (₹ Crore)	Project Scope	Execution Timeline	Announcement Date
East Central Railway	264.07	Kavach (TCAS) implementation on 607 RKm	By July 14, 2027	July 14, 2025
GAD, Chhattisgarh	17.47	Integrated communication infrastructure (WLAN, LAN, EPABX, O&M)	By January 14, 2031	July 9, 2025
Indian Overseas Bank	10.27	Point-to-Point (P-to-P) services	By August 7, 2025	July 12, 2025
Central Warehousing Corp.	96.99 (LOI)	Work order (details not specified)	By July 2030	July 8, 2025
Cuttack Development Authority	15.84	Work order (details not specified)	Not specified	July 1, 2025

July 2025 stood out for RailTel’s volume, project spread, and long-term revenue potential. 

The recent ₹264.07 crore Kavach contract from East Central Railway marked a substantial addition, both in terms of project value and technological relevance, covering over 600 RKm with implementation scheduled through mid-2027. 

Alongside this, the ₹96.99 crore (LOI) from the Central Warehousing Corporation and the ₹17.47 crore contract from the Chhattisgarh General Administration Department (with O&M stretching to 2031) reinforced RailTel’s growing presence in infrastructure-heavy, long-tenure projects. 

The remaining orders from Indian Overseas Bank and the Cuttack Development Authority, though smaller in ticket size, add to RailTel’s revenue pipeline for FY25 and reinforce its presence in institutional ICT.

What distinguishes July’s wins is not only the size (₹404+ crore cumulatively, including LOI-based values) but also the balance between time-bound execution and multi-year contracts. This mix is likely to strengthen revenue stability and cash flow visibility.

(Source: Company Website)

2. FY25 Order Book Activity

Beyond July 2025, RailTel’s order inflow has remained consistent across Q1 FY26:

• Over ₹3,100 crore worth of orders were secured between April and June 2025 from sectors including education, traffic management, and police surveillance.
• Orders such as ₹274.40 crore from Maharashtra MVD (traffic management) and ₹243.11 crore from Bihar’s education department are indicative of growing state-level digital infrastructure demand.
• As of May 2025, 70.28% of RailTel’s ₹6,616 crore order book came from non-railway projects, highlighting diversification.
• Competitive tenders accounted for ~61–62% of the total orders, with the rest from nominations.

This trend of consistent order inflow, particularly from long-tenure and high-complexity projects, supports RailTel’s FY25 growth target of 25–30% and signals continued expansion in its role as a digital solutions partner for government and PSU clients.

(Source: Company Website)

How Did The New Order Win Affect The Share Price?

On July 15, 2025, RailTel’s share price moved up by nearly 4% intraday, reaching ₹425.50 following the announcement of a ₹264.07 crore order from East Central Railway for the Kavach system.

(Source: Money Control)

Other Factors Supporting the Price Rise

The stock movements seen during July 2025, including the 3.85% rise following the East Central Railway order, occurred alongside a set of broader company-specific and sectoral developments:

A. Q4 FY25 Financial Results

RailTel’s financial performance for Q4 FY25, announced on May 1, 2025, reported:

• Revenue: ₹1,308.28 crore, up 57% YoY
• Net Profit: ₹113.4 crore, up 46.3% YoY

(Source: Financial Statements)

These figures led to a 7% increase in the share price on May 2, 2025. 

(Source: Money Control)

B. Government and Sectoral Context

• Navratna PSU Designation: RailTel received Navratna status in 2024. The classification allows for operational autonomy in select areas and reflects its strategic relevance in telecom and railway modernization.
• Railway Budget 2025: The Union Budget 2025 outlined expanded capital outlay for the railways, including funding for safety enhancements, electrification, and infrastructure upgrades, areas where RailTel has an established presence.
• Rail Infrastructure Projects: Programs such as Vande Bharat, bullet trains, and station redevelopment contribute to an ongoing pipeline for digital and signaling systems.
• Domestic Sourcing Initiatives: Policies under “Make in India” and “Atmanirbhar Bharat” promote reliance on domestic technology providers, increasing contract opportunities for Indian PSUs like RailTel.

C. Telecom Sector Trends (FY25)

• Adjusted Gross Revenue (AGR) for the telecom sector grew 12.02% YoY to ₹3,03,025 crore.
• Gross Revenue (GR) stood at ₹3,72,097 crore, up 10.72% YoY.
• Broadband Subscribers reached 944.12 million, and wireline subscribers rose by 9.62% to 37.04 million.

These developments align with RailTel’s service portfolio in broadband, managed services, and fiber infrastructure.

Conclusion

RailTel’s diversified order book, and ongoing policy momentum in the railway and digital infrastructure sectors provides it good visibility.

While these developments offer a view into the company’s operational and market position, any interpretation of stock movements or forward outlook should be supported by careful research and a deeper analysis of evolving order flows, execution timelines, and financial performance trends.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Filing income tax returns is a mandatory financial responsibility for salaried individuals, professionals, and businesses in India. 

However, sometimes taxpayers may not agree with the decisions made by the Income Tax Department, whether related to incorrect tax computation, rejected deductions, or unfair penalties. 

In such cases, the Income Tax Act provides a remedy through an income tax appeal, which can be filed using Form 35.

What is Form 35?

Form 35 is the official format prescribed by the Income Tax Department to file an appeal against an order passed by an assessing officer or other lower authorities like the Assistant Commissioner. It is submitted to the Commissioner of Income Tax (Appeals), also known as CIT(A), under Section 246A of the Income Tax Act, 1961.

If you disagree with the intimation under Section 143(1), a demand notice, or any assessment/reassessment order, then filing Form 35 income tax appeal becomes necessary.

Purpose of Filing an Income Tax Appeal Using Form 35

The key reasons for using Form No 35 income tax appeal online include:

• Disputes regarding income tax calculation on salary.
  
• Disallowance of expenses or deductions.
  
• Disagreement with penalty orders.
  
• Appeals against orders under direct tax provisions.
  
• Seeking relief from additional tax burdens, such as professional tax disputes.
  
• Rectifying errors in assessment related to investments.

Time Limit for Filing Form 35

Deadline for Submitting Income Tax Appeal

According to the Income Tax Act, an appeal using Form 35 must be filed within 30 days from the date of:

• The receipt of assessment order,
  
• Intimation under Section 143(1),
  
• Or any order against which the taxpayer wants to appeal.

If you fail to submit Form 35 income tax appeal within this period, you may lose your right to appeal unless you can justify the delay.

Consequences of Delayed Filing

Filing the income tax appeal Form 35 beyond the due date can have serious implications:

• The appeal may be dismissed without being heard.
  
• The taxpayer must submit a condonation request explaining the reason for delay.
  
• The CIT(A) holds the discretion to accept or reject the delayed appeal.

So, it’s crucial to act within the stipulated timeline to safeguard your rights.

How to Download Form 35

Steps to Download Form 35 from the Income Tax Portal

Here is how you can download Form No 35 income tax appeal online:

1. Visit the official Income Tax e-Filing portal at www.incometax.gov.in.
   
2. Log in using your PAN, password, and captcha code.
   
3. Go to e-File > Income Tax Forms > File Income Tax Forms.
   
4. Select Form 35 – Appeal to Commissioner of Income Tax (Appeals).
   
5. Choose the relevant Assessment Year and download the form.

Alternative Ways to Access Form 35 Format

Alternatively, you can:

• Download a sample Form 35 PDF from the ClearTax portal here: ClearTax Form 35 Guide.
  
• Refer to the Income Tax Rules, 1962 for the prescribed format.

How to File Form 35 Online

Pre-Requisites Before Filing

Before starting the filing process, ensure the following:

• You have an active PAN and registered e-filing account.
  
• You possess a digital signature certificate (DSC), if applicable.
  
• You have received a valid assessment order/intimation.
  
• You know the exact section under which the appeal is being filed.
  
• Keep all supporting documents ready in PDF format.

Step-by-Step Filing Process Through the Income Tax e-Filing Portal

Here’s the complete process to file Form 35 income tax appeal online:

• Log in to www.incometax.gov.in using PAN credentials.
  
• Go to e-File > Income Tax Forms > File Income Tax Forms.
  
• Choose Form 35 and select the relevant Assessment Year.
  
• Fill in the basic details, such as:
  
  • PAN
    
  • Assessment Year
    
  • Section of Appeal
    
  • Details of the Assessing Officer
    
• Mention the reasons for appeal and grounds of appeal in the relevant text boxes.
  
• Upload documents (like assessment orders, computation sheet, supporting documents).
  
• Provide details of appeal fees paid (more on that below).
  
• Submit the form using OTP, DSC, or EVC (Electronic Verification Code).

Filing Acknowledgment and Tracking Status

After successful submission:

• You will receive an Acknowledgment Number.
  
• This can be used to track the status of the appeal from the portal under ‘e-Proceedings’ or ‘Pending Actions’.
  
• You will also be notified via email/SMS.

Documents Required for Filing Form 35

Mandatory Documents Needed

When filing Form 35, the following documents are mandatory:

• Copy of PAN card
  
• Assessment Order/Intimation under relevant section
  
• Computation of income and tax calculation
  
• Form 26AS to show TDS credits
  
• Proof of appeal fee payment
  
• Statement of Facts and Grounds of Appeal

Optional Supporting Documents to Strengthen the Appeal

Additional documents that may help include:

• Bank statements
  
• Investment proofs
  
• Salary slips (especially in case of disputes with income tax calculation on salary)
  
• Invoices or receipts related to business/professional expenses
  
• Letters or agreements with a stock market advisory company if deduction is under dispute

Charges for Submitting Form 35

The Income Tax Department has set nominal fees for filing an appeal. The structure is as follows:

Total Assessed Income	Appeal Fee
Up to Rs. 1 lakh	Rs. 250
Rs. 1 lakh to Rs. 2 Lakh	Rs. 500
Above Rs. 2 Lakh	Rs. 1000
For Matters Not Involving Income	Rs. 250

Mode of Payment for Appeal Filing Fee

You can pay the appeal fee via:

• Income Tax e-Payment portal
  
• Net banking
  
• Debit card or UPI through authorized banks
  
• Generate Challan No./ITNS 280 and attach proof during form upload

Ensure that the fee payment is made before submitting Form 35 income tax appeal, as the challan number is a mandatory field.

Important Points to Remember While Filing Form 35

Accuracy of Facts and Details

• Make sure the Grounds of Appeal and Facts of the Case are written clearly.
  
• Avoid making emotional or vague statements.
  
• Be concise and to the point. Use bullet points if required.

Role of Authorized Representatives in Appeals

If you are represented by a chartered accountant, tax consultant, or legal expert, you must:

• Provide their name, designation, and address in the form.
  
• Upload the letter of authorization or power of attorney.

Common Errors to Avoid

• Not filing within 30 days of order receipt.
  
• Uploading wrong or unreadable PDF files.
  
• Providing incorrect assessment year or order details.
  
• Not verifying the form via OTP or DSC.

Conclusion

Filing Form 35 income tax appeal is an essential remedy for any taxpayer aggrieved by an assessment order. When done correctly and within time, it helps safeguard your legal rights, rectify any assessment errors, and avoid unnecessary penalties.

For salaried individuals, businesses, or those working with a stock market advisory company, understanding this process can make a huge difference in tax liability and financial peace of mind.

Whether your issue relates to income tax calculation on salary, professional tax, or a misinterpretation of deductions under direct tax laws, Form 35 is your first legal step towards a fair resolution.

FAQs

Can I file Form 35 manually instead of online?

No, currently, for most taxpayers, Form 35 must be filed online through the Income Tax e-Filing portal.

What is the fee for filing an appeal with Form 35?

The fee ranges from ₹250 to ₹1,000 based on the assessed income as explained above.

Can I revise Form 35 after submission?

No, once submitted, Form 35 cannot be revised. However, you can withdraw the appeal by submitting a letter to the CIT(A) and then file a new one if within the allowed time.

What happens after Form 35 is filed?

After filing Form 35, you will receive an acknowledgment. The CIT(A) will review your appeal, conduct a hearing (in person or online), and issue a final order. If unsatisfied, you can further appeal to the Income Tax Appellate Tribunal (ITAT).

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

When it comes to promoting ease of doing business and encouraging entrepreneurship in India, tax incentives play a vital role. The Indian government has introduced several measures to reduce the tax burden on new manufacturing companies and startups. 

One such important provision is Form 10IB of Income Tax Act, which is directly linked with Section 115BA of the Income Tax Act.

This form allows eligible domestic manufacturing companies to opt for a concessional tax rate of 25%, provided they fulfill specific conditions. Timely filing of this form is crucial for availing the benefits. 

Understanding how to file ITR online also becomes essential, as Form 10IB must be submitted before the ITR due date to ensure companies can legally opt for this lower tax rate and avoid unnecessary compliance issues.

Let’s understand the purpose, eligibility, process of filing, key benefits, and consequences of non-filing of Form 10IB of Income Tax Act.

What is Form 10IB Under the Income Tax Act?

Form 10IB is an online declaration form that must be filed by domestic companies engaged in manufacturing to opt for a lower corporate tax rate under Section 115BA of the Income Tax Act. This provision was introduced as part of the government’s broader efforts to incentivize Make in India initiatives and attract investments.

The reduced tax rate of 25% (plus applicable surcharge and cess) is applicable only when the company opts for it by filing Form 10IB within the specified timeline.

Importance of Form 10IB for Businesses and Startups

For new businesses and startups, managing taxes efficiently is crucial for preserving working capital and fueling growth. Filing Form 10IB of Income Tax Act enables eligible manufacturing companies to benefit from a reduced tax burden during their early stages.

Who Needs to File Form 10-IB?

Not all companies are eligible to file Form 10IB. The Income Tax Act outlines clear guidelines for who can file this form and benefit under Section 115BA.

Eligibility Criteria for Filing

A company must fulfill the following conditions to file Form 10IB:

• It should be a domestic company incorporated on or after March 1, 2016.
  
• The company must be engaged in the business of manufacturing or production of an article or thing.
  
• It should not claim any deductions under Sections 10AA, 35AD, 35CCC, or any provisions under Chapter VI-A other than Section 80JJAA.
  
• It should not be engaged in any business other than manufacturing or production.
  
• The option to file Form 10IB of Income Tax Act must be exercised on or before the due date for filing the income tax return under Section 139(1).

Specified Companies and Startups Under Section 115BA

Section 115BA is meant for manufacturing companies, and this includes startups engaged exclusively in such operations. It does not cover trading, service-based, or investment companies. Additionally, stock advisory companies or those providing financial services are not eligible under this section unless they have a distinct manufacturing arm.

Purpose of Filing Form 10IB

The government provides a concessional tax regime to promote manufacturing in India. Form 10IB of Income Tax Act serves as the declaration to avail this benefit.

Opting for Concessional Tax Rate Under Section 115BA

By filing Form 10IB, a company formally opts to be taxed under Section 115BA, which means:

• 25% basic tax rate (plus surcharge and cess)
  
• No MAT (Minimum Alternate Tax) applicability under this section
  
• Must forgo certain exemptions and deductions

Reducing Corporate Tax Burden

Corporate tax is often one of the largest expenses for a company. By opting for the concessional tax regime, the overall effective tax liability reduces significantly, especially in the formative years of the business.

Key Conditions for Availing Tax Benefits Using Form 10IB

While the tax benefit under Section 115BA is attractive, it comes with certain conditions and restrictions.

Turnover Limits

Unlike other tax provisions like those applicable to MSMEs, Section 115BA does not impose a turnover limit. However, the company must be engaged exclusively in manufacturing and must not be formed by splitting or reconstruction of an existing business.

Restrictions on Certain Deductions and Incentives

The company opting for this concessional rate must not claim deductions under the following sections:

• Section 10AA (SEZ units)
  
• Section 32(1)(iia) (Additional depreciation)
  
• Section 35AD, 35CCC (Expenditure on specified business or skill development)
  
• Chapter VI-A deductions (except 80JJAA for employment generation)

This exclusion of incentives must be carefully evaluated before filing.

Step-by-Step Process to File Form 10IB

Filing Form 10IB is an entirely online process via the Income Tax e-filing portal. Here’s how to do it:

Timeline for Filing Form 10-IB

• The form must be filed before the due date of ITR filing under Section 139(1), typically July 31st for companies not subject to audit, and October 31st for companies requiring an audit.

Online Submission Procedure on Income Tax Portal

1. Log in to the Income Tax Portal (https://www.incometax.gov.in)
   
2. Navigate to e-File > Income Tax Forms > File Income Tax Forms
   
3. Select Form 10-IB from the dropdown
   
4. Fill out the necessary details such as company PAN, date of incorporation, business activity
   
5. Validate financial year and assessment year details
   
6. Submit the form using Digital Signature Certificate (DSC)
   
7. Download the acknowledgment receipt for your records

For those unfamiliar with this process, it’s similar to how individuals file ITR online, just tailored for corporate declarations.

Important Details Required in Form 10-IB

Before starting the filing process, make sure you have the following data ready:

Company Registration Details

• PAN of the company
  
• Date of incorporation
  
• Registered business address
  
• Nature of business (Manufacturing only)

Financial Year and Assessment Year Information

• Details of the relevant financial year
  
• Corresponding assessment year
  
• Confirmation that the company will adhere to the terms of Section 115BA

Consequences of Non-Filing or Incorrect Filing

Companies that fail to file Form 10IB of Income Tax Act or make errors in submission can lose out on the concessional tax benefits.

Impact on Availing Lower Tax Rates

If the form is not submitted on time, the company will be automatically taxed under the old tax regime, which is characterized by normal tax rates with all applicable deductions and incentives. This may result in a higher tax outgo.

Penalties and Compliance Issues

While there is no direct penalty under the Act for non-filing of Form 10IB of Income Tax Act, the indirect impact can be significant:

• Higher taxes
  
• Possible scrutiny from tax authorities
  
• Compliance mismatch if deductions are incorrectly claimed under the wrong tax regime

Comparison of Taxation With and Without Form 10IB

Let’s understand the financial impact of filing Form 10-IB with a simple illustration.

Illustration of Tax Rates

Particulars	With Form 10IB(Sec 115BA)	Without Form 10IB(Normal Regime)
Total Income	₹1,00,00,000	₹1,00,00,000
Tax Rate	25%	30%
Tax Payable (Before Cess)	₹25,00,000	₹30,00,000
Effective Tax Liability (Approx.)	₹26,00,000	₹31,20,000

Impact on Effective Tax Liability

By opting for Section 115BA through Form 10-IB, the company saves around ₹5 lakh per crore of taxable income.

Recent Amendments Related to Form 10-IB

Updates from Finance Acts and CBDT Notifications

• Finance Act 2020 and subsequent Finance Acts have not made major changes to Section 115BA but introduced Section 115BAA and 115BAB, which offer even lower rates under different conditions.
  
• However, Form 10-IB continues to be relevant for companies incorporated between March 1, 2016, and September 30, 2019.
  
• The CBDT occasionally issues circulars clarifying doubts on deductions and timelines, which companies should regularly monitor via the official Income Tax portal or trusted stock advisory company blogs.

Conclusion

For eligible new manufacturing companies, Form 10IB of Income Tax Act is a gateway to significant tax savings. However, the benefits can be availed only if the form is filed accurately and within the stipulated deadline.

Startups and entrepreneurs should assess their eligibility early, compare tax scenarios under different provisions (like 115BAA and the old tax regime), and consult with professionals if necessary. 

Whether you are a founder managing your own filings or running a stock advisory company helping others, being aware of these provisions helps optimize taxation and remain compliant.

FAQs

What is the deadline for filing Form 10IB?

It must be filed on or before the due date of filing ITR under Section 139(1), generally July 31 or October 31, depending on whether audit is applicable.

Can a company withdraw once Form 10IB is filed?

No. Once the company opts for taxation under Section 115BA by filing Form 10IB, it cannot withdraw the option in subsequent years.

What if a company misses filing Form 10IB?

Missing the deadline means the company will be taxed at normal corporate tax rates under the old tax regime. It cannot opt for Section 115BA later for that year.

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