Finance Ministry Updates Advance Tax Payment Regulations

The finance ministry issued a new correction regarding the Income Tax Bill, focusing on the interest imposed for short payments in advance tax. The updated provision now aligns with existing tax laws.

Under the current regulation, taxpayers with liabilities of Rs 10,000 or more must pay advance tax in four installments across the year. The recent amendment ensures a 3% interest charge on underpayments that don't meet the quarterly deadlines.

This move, approved by the Lok Sabha, aims to replace the outdated tax system with simpler, comprehensive legislation. The bill intends to streamline the number of chapters and reduce wordage in the tax code.

(With inputs from agencies.)