Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty. 2 CPC now is Withdrawing Notice u/s 139(9) with the remarks that it has been issued inadvertently.

CBDT may shelve plan to seek corporate tax estimates in advance

Giving corporates and professionals a breather, the Central Board of Direct Taxes may junk its proposal directing them to submit their tax payment estimate for the next two quarters in advance.

In September, the CBDT came up with a draft notification directing companies with an annual income of ₹1 crore and professionals with ₹50 lakh income per annum to report estimates of their current income, tax payments and advance tax liability on a voluntary basis.

In case the income estimate is less than the income for the previous corresponding period by ₹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 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 CBDT did not respond to a mail sent by BusinessLine seeking clarification.

The proposal might have been put on the back-burner to avoid attracting the wrath of businessmen, especially with the Gujarat election next month and the marked slowdown in the economy.

Moreover, the government has been facing the heat for the pain caused by GST and demonetisation on the economy.

“With less than a week to go, I do not think CBDT will rush with the notification and make people abide by it without giving sufficient time.

“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 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.

Refer: thehindubusinessline.com

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