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:- 

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 (34)
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).

(                                ) 

Signature of the Assessee

Dated:

(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 protected].

(Dr. T.S.Mapwal)

Under Secretary (TPL-IV)

Tel: 011-23095471

Email: [email protected]

Self-reporting of estimated income requires specified taxpayers to furnish intimation of estimated income and tax payments using prescribed form. A draft insertion of Rule 39A would require companies and taxpayers subject to tax audit to intimate estimated income, tax liability and payments using prescribed Form No.28AA based on mid-year estimates and, if materially reduced from the prior year, a subsequent year-end intimation. Form No.28AA prescribes detailed line items for income heads, deductions, tax computations (including deemed income and credits), TDS/TCS and advance tax, alongside turnover and profit disclosures and a required explanation when estimated advance-tax is lower than prior-year payments. Public comments are invited on the draft.