Companies (Profits) Surtax Act,1964
Act No : 7
Section : Provisional assessment
7.Provisional assessment. (1) The Income-tax Officer, before proceeding to make an assessment under section 6 (in this section referred to as the regular assessment) may, at any time after the expiry of the period allowed under sub-section (1) or sub-section (2) of section 5 for the furnishing of the return and whether the return has or has not been furnished, proceed to make in a summary manner a provisional assessment of the chargeable profits and the amount of the surtax payable thereon. (2) Before making such provisional assessment, the Income-tax Officer shall give notice in the prescribed form to the person on whom the provisional assessment is to be made of his intension to do so, and shall with the notice forward a statement of the amount of the proposed assessment, and the said person shall be entitled to deliver to the Income-tax Officer at any time within fourteen days of the service of the said notice a statement of his objections, if any, to the amount of the proposed assessment. (3) On expiry of the said fourteen days from the date of service of the notice referred to in sub-section (2), or earlier, if the assessee agrees to the proposed provisional assessment, the Income-tax Officer may, after taking into account the objections, if any, made under sub-section (2), make a provisional assessment, and shall furnish a copy of the order of the assessment to the assessee: Provided that assent to the amount of the provisional assessment, or failure to make objection to it, shall in no way prejudice the assessee in relation to the regular assessment. (4) There shall be no right of appeal against a provisional assessment made under this section, (5) After a regular assessment has been made, any amount paid or deemed to have been paid towards the provisional assessment made under this section shall be deemed to have been paid towards the regular assessment; and where the amount paid or deemed to have been paid towards the provisional assessment exceeds the amount payable under the regular assessment, the excess shall be refunded to the assessee. 1 [7A. Advance payment of surtax. (1) In this section,- (a) "chargeable amount", in relation to any previous year, means so much of the chargeable profits of the previous year as exceed the statutory deduction; (b) "current chargeable amount", in relation to the advance surtax payable by a company during any financial year, means the chargeable amount of the company of the, period which would be the previous year for the assessment year immediately following that financial year. (2) Surtax shall be payable, in accordance' with the pro- visions of--this section, in advance during the financial year in respect of the chargeable amount of the period which would be the previous year for the immediately following assessment year. (3) The amount of advance surtax payable by an assessee in the financial year shall be computed as follows:- (a) the chargeable amount of the latest previous year in respect of which the assessee has been assessed by way of regular assessment shall first be ascertained ; (b) in a case where the chargeable amount of the latest previous year [being a year later than the previous year referred to in clause (a) on the basis of which a provisional assessment has been made under section 7. exceeds the chargeable amount referred to in clause, (a), the, chargeable, amount referred to in clause (a) shall be sub- stituted by the chargeable amount on the basis of which such provisional assessment has been made; (c) surtax shall be calculated on the chargeable amount referred to in clause (a) or, as the case may be, in clause (b), at the rates specified in the Third Schedule. (4) Subject to the provisions of this section, advance sur- tax shall be payable in three equal instalments on the following dates during the financial year, namely:- (a) the 15th day of June, the 15th day of September and the 15th day of December, in the case of an assessee whose chargeable amount to the extent of 75 per cent. thereof or more is derived from a source or sources for which the previous year (relevant to the assessment year next following the financial year aforesaid) ends on or before the 31st day of December; (b) the 15th day of September, the 15th day of December and the 15th day of March, in any other case. Provided that where, in respect of any class of assessees, the Board has, in exercise of the powers conferred by the proviso to sub- section (1) of section 211 of the Income-tax Act, authorised the payment of the last instalment of advance tax on the 15th day of March during the financial year instead of on the 15th day of December, the last instalment of advance surtax in the case of such assessees shall also be payable on the 15th day of March during the financial year. (5) Every company shall, in each financial year, on or before the date on which the first instalment, or where it has not previously been assessed by way of regular assessment under this Act, on or before the date on which the last instalment, of advance surtax is due in its case under sub-section (4), if it is likely to have any current chargeable amount, send to the Income-tax Officer,-- (a) where it has been previously assessed by way of regular assessment under this Act, a statement of advance surtax payable by it computed in the manner laid down in sub-section (3), or (b) where it has not previously been assessed by way of regular assessment under this Act, an estimate of-- (i) the current chargeable amount and (ii) the advance surtax payable by it on the amount specified in (i) above calculated in the, manner laid down in sub-section (3), and shall pay such amount of advance surtax,- (I) in a case falling under clause (a), as accords with the statement in equal instalments on the dates applicable in its case under sub-section (4); and (II) in a case falling under clause (b), as accords with the estimate in equal instalments on such of the dates applicable in its case as have not expired, or in one sum if only the last of such dates has not expired. (6) Where a company which is required to send a statement under clause (a) of sub-section (5) estimates on or before the date on which the first instalment of advance surtax is due in its case under sub- section (4) that, by reason of its current chargeable amount being likely to be less than the chargeable amount on which advance surtax is payable by it under subsection (5) or for any other reason, the amount of advance surtax computed in the manner laid down in sub- section (3) on the current chargeable amount would be less than the amount of advance surtax payable by it under sub-section (5), it may send to the Income-tax Officer, in lieu of such statement, an estimate of- (i) the current chargeable amount, and (ii) the advance surtax payable by it on the current chargeable amount calculated in the manner laid down in sub- section (3), and shall pay such amount of advance surtax as accords with its estimate in equal instalments on the dates applicable in its case under sub-section (4). (7) Where a company which has sent a statement under clause (a) of subsection (5) estimates on or before the date on which the last instalment of advance surtax is due in its case that, by reason of its current chargeable amount being likely to be less than the chargeable amount on which advance surtax is payable by it under sub-section (5) or for any other reason, the amount of advance surtax computed in the manner laid down in sub-section (3) on the current chargeable amount would be less than the amount of advance surtax payable by it under- sub-section (5), it may, at its option, send to the Income-tax Officer an estimate of-- (i) the current chargeable amount, and (ii) the advance surtax payable by it on the current chargeable amount calculated in the manner laid down in sub- section (3), and shall pay such amount of advance surtax as accords with its estimate in equal instalments on such of the dates applicable in its case under subsection (4) as have not expired, or in one sum if only the last of such dates has not expired. (8) In the case of any company which is liable to pay advance surtax under subsection (5) or sub-section (6) or, as the case may be, sub-section (7), if, by reason of the current chargeable amount being likely to be greater than the chargeable amount on which the advance surtax so payable by it has been computed or for any other reason, the amount of advance surtax computed in the manner laid down in sub- section (3) on the current chargeable amount (which shall be estimated by the company) exceeds the amount of advance surtax so payable by it by more than twenty per cent. of the latter amount, it shall, on or before the date on which the last instalment of advance surtax is payable by it, send to the Income-tax Officer an estimate of- (i) the current chargeable amount, and (ii) the advance surtax payable by it on the current chargeable amount calculated in the manner laid down in sub- section (3), and shall pay such amount of advance surtax as accords with its estimate on such of the dates applicable in its case under sub-section (4) as have not expired, by instalment-. which may be revised according to sub-section (9): Provided that where in respect of any company the Commissioner has, in exercise of the powers conferred by the first proviso to sub- section (4) of section 209A, or the first proviso to sub-section (3A) of section 212, of the Income-tax Act, extended the date for furnishing the estimate referred to in the said sub-section (4) or, as the case may be, the said sub-section (3A) and the company has paid the advance surtax which it is liable to pay under sub-section (5) or sub-section (6) or, as the case may be, sub-section (7) on or before the date on which the last instalment of advance surtax is due in its case, the company shall pay, on or before the date as so extended, the amount by which the advance surtax already paid by It falls short of the advance surtax payable in accordance with its estimate. (9) The company may send a revised estimate of the, advance surtax payable by it on or before any one of the dates specified in sub-section (4) and adjust any excess or deficiency in respect of any instalment already paid in a subsequent instalment or in subsequent instalments. (10)Every statement or estimate under this section shall be sent in the prescribed form and verified in the prescribed manner.
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