Issue/Justification
The Finance Act (No. 2), 2009 raised the limit to pay advance tax under section 208 to Rs. 10,000. Considering the inflationary conditions prevailing in the country, it is felt that the said limit needs to be revised upwards so that the amount payable in one installment of the advance tax exceeds at least Rs. 5,000. The present amount of Rs. 2,500 is too low. In fact, any assessee whose advance tax payable does not exceed Rs. 30,000 should be allowed to pay full amount in the last installment. It is appreciable that the Finance Act, 2016 has provided for an exception to an eligible assessee in respect of an eligible business referred to in section 44AD to pay the whole of the advance tax in one go by 15th March of the financial year itself.
Suggestion.
The limit to pay advance tax under section 208 be raised appropriately. In fact, any assessee whose advance tax payable does not exceed Rs. 30,000 maybe allowed to pay full amount in the last installment.
(SUGGESTIONS FOR RATIONALIZATION OF THE PROVISIONS OF DIRECT TAX LAWS)
