Taxpayers and companies who need to get their financials audited shall be required to submit their income estimates for the first six months of the fiscal until September by November 15 to the Income Tax Department. For the same, the CBDT is seeking comment of the stakeholder's for the filling of the form 28AA in respect of giving out the details of both income estimates as well as advance taxes paid.
Also, reasons for any reduction in advance tax payment in comparison of the preceding year has to be listed. The phenomena is going to provide the tax dept. with the income information of the entity on the real-time basis.
As per a current regime, taxpayers only need to pay advance tax on income estimates for the full financial year in four instalments with no income estimates prescribed to be provided.
"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," the Central Board of Direct Taxes (CBDT) said in a draft notification.
If the income estimated as on 30 September of the previous year is less than the income of the corresponding period of the immediately preceding year by Rs 5 lakh or 10 percent, whichever is higher, then the assessee would be required to furnish an intimation of estimated income and payment of taxes as on 31 December, CBDT added.
Comments on the new proposed ruling which will require filling up of Form28 AA shall be entertained until September 29.