Proposed Form 28aa - 2017 Notification - Income Tax

The Department of Revenue (Central Board of Direct Taxes) has circulated a draft notification for insertion of new rule 39A in the Income Tax Rules, 1962 for creating new type of

income tax filing requirement. According to the draft notification issued on 19th September 2017, a new mechanism would be created 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.

Who would have to file form 28AA?

Form 28AA would have to be filed by all companies and any other type of entity or person for whom tax audit is applicable. In the form, the taxpayer must provide information about estimated income and payment of taxes like income, TDS deducted, advance tax paid, etc.,

What is the due date for filing form 28AA?

Form 28AA will be due on or before the 15th November for the period of 1st April to September 30th. In the income estimated as on 30th September is less than the income of the corresponding period of the previous year by an amount of Rs.5 lakhs or 10 percent, whichever is higher, Form 28AA will be due on or before 31st January.

Details to be Provided in Form 28AA

Name of the assessee
PAN
Previous Year (PY)
Assessment Year (AY)
Nature of Business or profession (if more than one business or profession indicate the main activities/products)
Details of estimated Income/tax liability for previous year
Details of turnover, profit etc.
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).

Form 28AA Notification

A copy of the draft notification introducing Form 28AA is reproduced below for reference:

Back to Learn

Frequently Asked Questions

Common questions about Form 28AA Income Tax Rules 2023.

Form 28AA is a new income tax filing requirement proposed by the Central Board of Direct Taxes (CBDT) for certain taxpayers, such as companies and those subject to tax audits. It is a mechanism for self-reporting estimates of current income, tax payments, and advance tax liability on a voluntary compliance basis.

All companies and any other type of entity or person for whom tax audit is applicable will have to file Form 28AA. This includes providing information about estimated income, TDS deducted, advance tax paid, and other relevant details.

The due date for filing Form 28AA is on or before 15th November for the period of 1st April to 30th September. However, if the estimated income as of 30th September is less than the income of the corresponding period of the previous year by Rs. 5 lakhs or 10%, whichever is higher, the due date is extended to 31st January.

The details to be provided in Form 28AA include the assessee's name, PAN, previous year, assessment year, nature of business or profession, estimated income/tax liability for the previous year, details of turnover and profit, and reasons for lower estimated advance tax payment (if applicable).

The introduction of Form 28AA aims to create a new mechanism for self-reporting of income estimates and tax payments by certain taxpayers. This is likely to promote voluntary compliance and assist the tax authorities in better monitoring and assessing tax liabilities.

No, the article mentions that filing Form 28AA is on a voluntary compliance basis. However, it will be mandatory for companies and those subject to tax audits if they wish to comply with the proposed requirement.

By providing estimates of income and tax payments upfront, taxpayers can demonstrate transparency and voluntary compliance. This may help avoid potential penalties or litigation in the future and contribute to a more efficient tax assessment process.

The article does not provide a specific timeline for when the draft notification introducing Form 28AA will be finalized. However, it mentions that the draft notification was circulated on 19th September 2017, indicating that the finalization process is underway.

No, the article does not suggest that Form 28AA will replace existing tax filing requirements. It appears to be an additional filing requirement for certain taxpayers, aimed at promoting voluntary compliance and assisting tax authorities in monitoring tax liabilities.

Taxpayers who fall under the category of companies or those subject to tax audits can stay informed about the latest developments regarding Form 28AA. They can consult with tax professionals or refer to official guidance from the CBDT to understand the specific requirements and ensure timely compliance if the proposal is finalized.