Government Proposed New Rules for Voluntary Reporting of Estimated Current Income and Advance Tax Liability
New Delhi: Government Proposed New Rules for Voluntary Reporting of Estimated Current Income and Advance Tax Liability
F. No. 370142/27/2017-TPL
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
New Delhi, September 19, 2017
Sub: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.
It is proposed to create a mechanism for self-reporting of estimates of current income, tax payments and advance tax liability by certain taxpayers viz. companies and tax audit cases, on voluntary compliance basis. Accordingly, in exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), an amendment of the Income-tax Rules, 1962 (“the Rules”) is proposed for insertion of a new Rule 39A and Form No.28AA in the Rules. The draft proposal is as under:-
(I) Intimation of estimated income, tax liability and payment of taxes
39A. (1) An assessee being a company and a person (other than a company), to whom the provisions of section 44AB are applicable shall furnish an intimation of estimated income and payment of taxes as on 30th September of the previous year, on or before 15th November of the previous year.
(2) If the income estimated as on 30th September of the previous year is less than the income of the corresponding period of the immediately preceding previous year by an amount of ? 5 Lakh or 10 percent, whichever is higher, then the assessee shall be required to furnish an intimation of estimated income and payment of taxes as on 31st December of the previous year, on or before 31st January of the previous year.
(II) In the rules, in Appendix II, after the „Form No. 28A?, the following Form shall be inserted, namely:-
(See rule 39A)
Intimation of estimated income, tax liability and payment of taxes for the previous year
1. Name of the assessee.__________________________________________
2. PAN._________________ 3. Previous Year (PY). ____________
4. Assessment Year (AY):____________
5. Nature of Business or profession (if more than one business or profession indicate the main activities/products)*#
6. Details of estimated Income/tax liability for previous year:-
|Particulars||Period ending on 30th September or 31St December of PY(As applicable)**||Period ending on 30th September or 31st December of year immediately preceding the PY(As applicable)**|
|Income from salary|
|Income from house property|
|Profits and gains from business or profession before depreciation as per Income-tax Act|
|Less depreciation as per Income-tax Act|
|Income from business or profession (34)|
|Income from other sources|
|Gross total income (1+2+5+6+7)|
|Losses to be set off|
|Deduction u/s 10AA|
|Deduction under Chapter VI-A|
|Total Income [8-(9+10+11)]|
|Tax payable on total income|
|Deemed total income u/s 115JB/115JC|
|Tax payable on deemed total income u/s 115JB/115JC|
|Tax payable (Higher of the Sl.No.13 & 15)|
|Credit u/s 115JAA/115JD|
|Tax relief u/s 90/90A/91|
|Net tax liability [16(17+18)]|
7. Details of turnover, profit etc.:-
|Sl.No.||Particulars||Period ending on 30th September or 31St December of PY(As applicable)**||Period ending on 30th September or 31st December of year immediately preceding the PY(As applicable)**||For the PY ending on 31st March (Estimated).||For the year immediately preceding the PY.|
|1||Gross receipts/turnov er|
|2||Less: Expenses other than interest, depreciation|
Depreciation as per books
|5||Profit before tax[1-(2+3+4)]|
8. If the estimated advance-tax payment for the previous year is less than the advance tax paid during the preceding previous year, please specify the reasons (Point-wise).
Signature of the Assessee
(Note: * Please see ITR Forms and instructions for the filling the business code and description.
** see rule 39A of the Income-tax Rule, 1692.
# In case of more than one business of different nature, the information may be furnished for each of the businesses separately.)”
3. The comments and suggestions of stakeholders and general public on the above draft notification are invited. The comments and suggestions may be sent electronically by … September, 2017 at the email address, email@example.com.
Under Secretary (TPL-IV)