Rule 39A-Intimation of estimated income and advance tax payment to be furnished by the assessee

Rule 39A-Intimation of estimated income and advance tax payment as on 30th September to be furnished by the assessee in form 28AA – CBDT Draft Notification 

Presently there is no such mechanism whereby the assessee is suo moto required to intimate the payment of advance tax to the Income Tax Authorities except in pursuance of order passed under section 210. 

As per existing Rule 39, the assessee  who is in receipt of the order u/s 210 as above, can furnish his own estimates of income/advance tax to the Assessing Officer in Form 28A.

The Draft Notification seeks to insert new Rule 39A and New Form 28AA as under: 

F.No.370142/27/2017-TPL
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
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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.

(II) In the rules, in Appendix II, after the „Form No. 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

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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.

(Dr. T.S.Mapwal)
Under Secretary (TPL-IV)
Tel: 011-23095471
Email: ts.mapwal@nic.in