Income Tax – Electronic Payment

By Vijay Kumar

A new Rule 125 has been added to the Income Tax Rules to make electronic payment mandatory for

1. Companies

2. A person (other than a company), to whom provisions of Section 44AB are applicable.

As per Section 44AB, businessmen with turnover of over Rs. 40 Lakhs and professionals with gross receipts of over ten lakhs rupees are required to get their accounts audited by an accountant.

What is electronic payment?

(i) internet banking facility of the authority bank; or

(ii) credit or debit cards;

Tax includes interest and penalty

And this notification is effective from any tax paid on or after the 1st day of April, 2008

CBDT Notification No. 34/2008 Dated 13thMarch 2008.