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CBDT has proposed to introduce a mechanism of self-reporting of income estimates, advance tax liability and payment thereof. CBDT has published draft notification on proposed insertion of rule 39A and Form 28AA for such self-reporting. As per draft notification, a company and a other person (who are subjected to audit u/s 44AB) shall furnish Form 28AA on voluntary basis with an estimation of income and advance tax payable/paid thereon.

The assessee shall furnish Form 28AA with details of estimated income and advance taxes paid as on September 30 by November 15 of previous year. If income estimated on September 30 is less than income of corresponding period of preceding previous year by 5 lakh or 10% whichever is higher then an intimation of estimated income and payment of taxes as on December 31 by January 31 of previous year.

If estimated advance tax payment for current previous year is less than preceding previous year then assessee would need to furnish reasons for the same.

The draft notification is in public domain for comments and suggestions.


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 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. 

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, dirtpl4@nic.in.


Published by

CA Priyanka Kushwaha
(Chartered Accountant)
Category Income Tax   Report

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