Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962-Voluntary declaration of Estimated Income & Advance Tax Liability

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 Rs.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.

• In the rules, in Appen­dix II, after the „Form 28A‟, the fol­low­ing Form shall be insert­ed, namely:-

Form No.28AA (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)*#

Sl.no.	Code	Descrip­tion

 

6. Details of esti­mat­ed Income/tax lia­bil­i­ty for pre­vi­ous year:-

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)**
1	Income from salary
2	Income from house property
3	Prof­its and gains from busi­ness or pro­fes­sion before depre­ci­a­tion as per Income-tax Act
4	Less depre­ci­a­tion as per Income-tax Act
5	Income from busi­ness or pro­fes­sion (3- 4)
6	Cap­i­tal gains
7	Income from oth­er sources
8	Gross total income (1+2+5+6+7)
9	Loss­es to be set off
10	Deduc­tion u/s 10AA
11	Deduc­tion under Chap­ter VI‑A
12	Total Income [8-(9+10+11)]
13	Tax payable on

 

	total income
14	Deemed total income u/s 115JB/115JC
15	Tax payable on deemed total income u/s 115JB/115JC
16	Tax payable (High­er of the Sl.No.13 & 15)
17	Cred­it u/s 115JAA/115JD
18	Tax relief u/s 90/90A/91
19	Net tax lia­bil­i­ty [16- (17+18)]
20	TDS/TCS
21	Advance tax

 

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 imme­di­a­tel y pre­ced­ing the PY.
1	Gross receipts/turnov er
2	Less: Expens­es oth­er than inter­est, depreciation
3	Less: Inter­est
4	Less: 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).

 

Dat­ed:                                                                                                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 29th September, 2017 at the email address, dirtpl4@nic.in.