To get a better perspective of the likely reliable flow of tax revenues to the exchequer in a fiscal year, the Central Board of Direct Taxes (CBDT) has decided to usher in a self-reporting mechanism for corporates for their estimated incomes, tax payments and advance tax liability.

The proposed mechanism — to apply only on tax audit assessees, including companies — requires them to furnish on or before November 15, an intimation of estimated income and payment of taxes as on September 30 in a fiscal year.

A continuous flow of tax revenues throughout the year is critical for the government to meet various budgetary allocations such as welfare scheme, infrastructure development and defence expenditure etc.

A reliable and advance estimate of tax revenues would provide much needed perspective for planning and prioritising government expenditure, CBDT said.The CBDT has now come up with a draft rule specifying the format of the self-reporting mechanism and sought stakeholders comments and suggestions to be sent electronically by September 29.

Moreover, if the income estimated, as on September 30 of the previous year (as described under the income tax law), is less than the income of the corresponding period of the immediately preceding previous year by an amount of ₹5 lakh or 10 per cent, whichever is higher, then the assessee would be required to furnish an intimation of estimated income and payment of taxes as on December 31 of the “previous year” on or before January 31 of the previous year. #casansaar (Source - The Hindu)