Report No. 12
220. Estimate by assessee.-
(1) If any assessee who is required to pay advance tax by an order under section 218 [section 18A sub-section (1)(a), main para., earlier half, part re: Order by Income-tax Officer] estimates at any time before the last instalment is due that his total income or income subject to advance tax for the period which would be the pervious year for the immediately following assessment year, is less than the total income on the basis of which, on the income on which, he is required to pay such tax, as the case may be, and accordingly wishes to pay an amount less than the amount which he is so required to pay, he may send to the Income-tax Officer-
(i) an estimate of the total income for that period,
(ii) an estimate of the income subject to advance tax for that period, and
(iii) an estimate of the advance tax payable by him calculated in the manner laid down in section 217 [section 18A(1) (a) main para., part, as embodied in section re: computation of tax]. He shall pay such amount as accords with his estimate in equal instalments on such of the dates specified in section 219 [section 18A(1) (a) main para., earlier half, part as embodied in draft section re: instalments] as have not expired or in one sum if only the last of such dates has not expired.
[Section 18(2), main para.]
(2) The assessee may send a revised estimate of the advance tax payable by him before any one of the dates [specified in section 219 [section 18A (1) (a), main para., earlier half, as embodied in draft section re: instalments] and adjust any excess or deficiency in respect of any instalment already paid in a subsequent instalment or in subsequent instalments.
[Section 18A(2), proviso]
(3) Any person who has not previously been assessed under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), shall, before the 15th day of March in each financial year, if his total income of the period which would be the previous year for the immediately following assessment year is likely to exceed the maximum amount not chargeable to income-tax in his case by two thousand five hundred rupees, send to the Income-tax Officer-
(i) an estimate of the total income of the said previous year;
(ii) an estimate of the income subject to advance tax of the said previous year; and
(iii) an estimate of the advance tax payable by him calculated in the manner laid down in section 217 [section 18A(1) (a) main para., earlier half, part as embodies in section re: computation of tax], and shall pay such amount as accords with his estimate, on such of the dates specified in section 219 [section 18A(1) (a), main para., earlier half, as embodied in section part, re: instalment] as have not expired, by instalments which may be revised according to sub-section (2) [proviso to section 18A(2)]
[Section 18A(3)]
(4) Every estimate under this section shall be sent in the prescribed form and verified in the prescribed manner.
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