Under the existing provisions of section 208 the Income-tax Act, liability for payment of advance tax during a financial year arises when the amount of such tax payable during that year is Rs.5,000/-or more. This limit was fixed in 1996.
With a view to providing for inflation adjustment, it is proposed to raise the threshold limit for payment of advance tax from the present Rs.5,000/- to Rs.10,000/-.
The proposed amendment will take effect from the 1st April, 2009. Accordingly, advance-tax for the financial year 2009-2010 would be payable only if the advance tax liability is Rs. 10,000/- or more.
on the same basis tax audit limit u/s 44ab shold also be increased upto 2.00-2.50 crore