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Working for application u/s 197 - rule 28aa

Karishma Jain (articles) (60 Points)

04 March 2013

Can any one pls explain me the working of tax rate for application u/s 197 with reference to rule 28AA.

Average of the average rate of Tax???..

Thanks in advance

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5 Replies

CA.D.RAGAVAN (CHARTERED ACCOUNTANTS) (219 Points)
Replied 04 March 2013

You Have to Work Out a Calculation Sheet for the Assessment Year for Which You are applying for a Certificate. You include all Sources of Income, Deduct all availabe Chapter VI A Deduction, Calculate the Tax Liability. With Taht Liability and the Expected Income from the Particular Source Calculate the average rate of Tax and Apply for the Certificate

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Karishma Jain (articles) (60 Points)
Replied 04 March 2013

Originally posted by : CA.D.RAGAVAN
	You Have to Work Out a Calculation Sheet for the Assessment Year for Which You are applying for a Certificate. You include all Sources of Income, Deduct all availabe Chapter VI A Deduction, Calculate the Tax Liability. With Taht Liability and the Expected Income from the Particular Source Calculate the average rate of Tax and Apply for the Certificate

Sir, but the calculation is to be done for the last 3 asst. years na???

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 04 March 2013

Originally posted by : CA.D.RAGAVAN
	You Have to Work Out a Calculation Sheet for the Assessment Year for Which You are applying for a Certificate. You include all Sources of Income, Deduct all availabe Chapter VI A Deduction, Calculate the Tax Liability. With Taht Liability and the Expected Income from the Particular Source Calculate the average rate of Tax and Apply for the Certificate

CA.D.RAGAVAN (CHARTERED ACCOUNTANTS) (219 Points)
Replied 04 March 2013

Past Years Calculations are Basis. But the Certificate requested is for Current Year. You Can make Justifications for deviations. The Department has to safeguard their interest. Further, the Certificate will not be issued exactly for the Average Rate Worked Out. The have to Average it with the earlier year Average Tax Also. The Particulars given for earlier year is a reference for the Issueing Authority