I-T self-assessment filings under lens

Officials say many firms, individuals are postponing advance tax payment to last quarter of FY18

The income-tax (I-T) department is suspecting that taxpayers are understating their advance tax liabilities under self-assessment in the early quarters of the year and showing them as tax on additional income or windfall gains at the end of the financial year. 

Tax officials have sought an explanation from several corporates and individuals who have filed their self-assessment in the last three years, according to sources.  

“The I-T laws allow self-assessment, but only up to a certain extent. Assessees can’t use this mode to adjust their ‘gains’ which they have not considered while paying advance tax,” said a top I-T