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The Government of India

MINISTRY of Finance

New Delhi

This is in response to your invite of suggestions with regard to the Estimate of Income to be filed in For No: 28AA, vide rule [new] 39A of the Income tax act.

The assessees are already overburdened with too many procedures to be followed. In case there is any shortage of tax they are paying interest U/s. 234B and 234C of the act. The Provision is similar to the earlier period where the assessees were supposed to file Form 29. This system was replaced …as such removed by the then Finance MINISTER MR. V. P SINGH making it easier and procedure free in terms of Payment of Advance tax and the interest thereon which covers the lapses on the part of the assessee and the benefit going to the Ministry of Finance.

It is to be brought before you that the tax payer is over burdened with compliance and the procedural formalities, which have become a daily routine and rather than concentrating on business and income generating activity, the assessee is forced to only abide by the procedural formalities. The Penal consequences for any non–compliance are also draconian that the percentage of revenue to the Govt from lapses in compliance is substantial and sometimes more than the genuine revenue earned by any assessee.

In the current case the form [Form 28AA] likely to be introduced is highly cumbersome and lengthy. No assessee can volunteer to file without the help of any Professional help. The Professional has to go in to the records of the earlier year and has to ascertain the financial details of the earlier year which will take substantial time.

The proposal smacks of total distrust of an assessee.  The proposal lacks understanding of the ground realities in which a common businessman conducts his affairs. A major chunk of the assesses who are subjected to Tax Audit comes from the unorganized sector.  The proposal presumes that the assessee is not only tech savvy but also has the support of a battery of accountants and professionals at his command.  The patience of an assessee who is already overburdened with too many procedural matters under Income Tax Act is now bursting at its seem with the advent of GST.  The professionals are also feeling the heat of the new procedures.  The existing procedural requirement under Income Tax Act and the newly introduced GST is taking its toll on them. The promise of ease of doing business seems have been given a complete go by. There is a simmering anger growing both amongst businessmen and professionals relating to unending plethora of returns and forms to be submitted. Introduction of Form No. 28AA may prove to be the proverbial last straw.’

It is still not clear as to what would be the penal consequences for any lapse in filing this form…

It is requested and suggested that the Draft notification may please be withdrawn and status -quo be maintained with respect to Payment of Advance tax.

Thanking you

Yours truly

For Tax bar Association




Date: 20-09-2017

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    No. No. No.
    The Dept must also introduce Form 365/366ABC to project daily expense &Average Daily income and upload it every 2 hrs in all 24 hrs in a day.
    Delay beyond 5 minutes should be penalised by Rs. I 20,000/- per minute.

    This will facilitate the Govt to own all properties of everyone quickly and end Black Money !!!!

  2. Vinod Jain sr partner RSVPC & Co. says:

    It is suggested that the rule should be applicable with a threshold limit of tax payment of Rs 1 Crore in immediate previous year. For small tax payers , it is “not so ease of doing business in India”.

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