Income Tax Department has proposed a mechanism for self-reporting of estimates of current income, tax payments and advance tax liability by certain taxpayers on voluntary compliance basis. It is being done to address the concerns of income tax payers who have to bear additional burden of interest for default of advance tax, in case total advance tax paid for the year falls short of the assessed tax by ten percent or more.
According to an official release, the proposed reporting mechanism is sought to be created by way of inserting a new Rule 39A and Form No. 28AA in the Income-tax Rules, 1962. The proposed draft notification has been posted on the website of Income Tax Department for comments from stakeholders and general public. The comments and suggestions on the draft Rule and Form may be sent electronically at email@example.com by 29th of this month.