CBDT had issued a draft notification directing companies with yearly income of Rs 1 crore and professionals earning Rs 50 lakh per year to report estimates of their current income, tax payments and advance tax liability on a voluntary basis.
The Central Board of Direct Taxes (CBDT) may drop its proposal directing companies and professionals to submit their tax payment estimates for the next two quarters in advance.
In September, the CBDT had issued a draft notification directing companies with an annual income of Rs 1 crore and professionals earning Rs 50 lakh per annum to report estimates of their current income, tax payments and advance tax liability on a voluntary basis.
If the income estimate is less than the income for the previous corresponding period by Rs 5 lakh or 10 per cent, whichever is higher, the assessee was supposed to give another estimate of income as on December 31, before the end of this year. The CBDT had given 45 days for assessees to prepare the estimate and submit it by November 15. However, the Board has not indicated a date till when it will receive comments on the draft notification and notify the final norms.
Tax experts feel that the Board may have put the proposal on the back-burner, as it has not notified the final norms even as the deadline for filing the first set of details is just days away.
“The new norms, even if notified, will not lead to any additional revenue for the government, as CBDT collects interest of 1 per cent per month on shortfall in tax payment from professionals and corporates,” said a tax expert.
The proposed changes were aimed at getting access to a new set of data on estimated income for the financial year, which will help the tax department identify sectors and regions where tax receipts are lagging, besides boosting the department’s revenue mobilisation steps.
Source: The Hindu Business Line