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GRIEVANCES & REMEDIES IN INCOME TAX

08-May-2013

GRIEVANCES & REMEDIES IN INCOME TAX

  1. CPC:

    1. In the case of CPC demand report adjustment against the refund a proper opportunity may please be given to the assessee before adjustment.
    2. The communication between the CPA & the department officer may please be expedited to settle any issue of the assessee very early, such as demand adjustment, refund, etc.
    3. Presently, the e-returns are processed at one single centre at Bangalore. Meanwhile announcement for 4 different centres was made but not yet enforced. It is requested to start the same immediately.
    4. Presently, the e-returns are processed at Bangalore and refund cheques are issued from Bombay. It is cum bur sum because if there is a slight mistake about account no. of the assessee, it is very difficult and time consuming for the assessee to get the corrected refund in time.
    5. Many times the refund cheque is issued on old bank account no. of the assessee and he could have closed that account. The refund cheques must be issue on the latest bank account provided by the assessee in his return of income.
    6. As per as possible all refunds should electronically credited to the account of the assessee instead of issussing paper cheque.
    7. Many times, old recoveries which are in fact, are not outstanding in the name of assessee, are deducted from the refund amount directly. It may please not be done because recently Delhi High Court has given guidelines for the same.
    8. Presently, it takes very much time to transfer the data of the assessee for a particular year from CPC to Assessing officer. Therefore, it takes long time to correct the defects and adjustment in the matter of particular assessee to be done manually at assessing officer level. It is therefore, requested to transfer the entire data from CPC to assessing officer immediately upon the e-return is processed at CPC. And all other further adjustment and correction may please be done at Assessing Officer at his level. It will help the distribution of work between CPC and Assessing Officer and ultimately the load of work with CPC will be minimized.
    9. A system should be made by which the assessee will not be required to contact CPC for even small work of him. Instead he should directly contact to his assessing officer locally any time after filing his e-return. Thereby, all his problems could be solved immediately at local level, without waiting for the CPC to act upon. It will ultimately minimize any income tax issues of the assessee.
    10. Recently CBDT is implementing new ideas and procedures in tax administration and it should made aware to the common assessee by Joint Seminar and lectures by competent authority. Then only the successful results could be obtained.
    11. Income Tax department is thinking to introduce e signature for income tax returns. It is a welcome decision. However, it is necessary to educate the assesses for successful launching of the idea.
    12. All the tax payment to be made compulsory by e payment. However, for this purpose sufficient infrastructure facilities must be made available particularly in rural areas.
    13. The filing of ITR V at CPC Bangalore creates legal frictions. A suitable way to be found so that any assessee will not be required to send ITR V to CPC Bangalore any more.
    14. Electronic filing of returns should be made compulsory for all the class of assessee’s. Electronic filing of returns is gaining traction day by day. It is an efficient and eco-friendly made of filing the return. However, proper infrastructure and nationwide network should be made available along with the proper awareness of the system among the assessee’s.
    15. It is observed that the Income Tax department is playing smart at CPC Centre Bangalore. The returns which results in demand are processed quickly, whereas, the returns with refund claimed are kept aside. It is therefore, requested to adopt some kind of method of processing, say LIFO or FIFO or any other suitable method, to give justice to all the assesses.
    16. It is a welcome move of the Income Tax Department to start the Aykar Seva Kendra (ASK) at certain cities. However, the actions on the submissions made by the assessee have not done as per the time specified on that centre. Also, only certain documents and submissions are accepted on ASK. However the basic purpose of introduction of ASK could not be served that there should be minimum interaction between the assessee and the officer. It was the only purpose behind this. Instead, if the department could take all the submissions through ASK it will be very much comfortable on the part of assessee as well as the department.
  2. Legal:

    1. The penalty provision u/s. 271(1) (c) may please not be enforced before the final decision of Appeal.
    2. In the Scrutiny, u/s. 143(3) or 153A the details about the earlier period may please not be called for.
    3. In the Scrutiny Assessment u/s. 143(3) or 153A detail about other family members may please not be called for.
    4. The provision of section 14A may please not be enforced, because it is a debatable section.
    5. The provision of section 41(1) may please not be enforced, because it is a debatable section.
    6. In the case of survey u/s. 133A, the statement may please not be enforced because the enforcement of the statement against the assessee is debatable.
    7. In the case of investigation the relevant documents and records with explanation need to be called for the relevant year only, instead of calling for 5-6 years.
    8. In the case of 154 applications it may please be disposed at the earliest.
    9. In the case of Scrutiny assessment the addition on account of personal element may please not be enforced.
    10. In the case of disputed demand and the matter is in under appeal the stay may please be granted automatically against the payment of 50% demand as per CBDT instruction.
    11. In the case of retrospective amendment it may please not be enforced since those amendments are debatable.
    12. In the case of deeming provision the penalty provision may please not be enforced, because those provisions are debatable.
    13. In the case of CIT Appeals if decision is in favour of appeal and the department does not go further to the Tribunal by any reason, the decision of the appeal may please be accepted and applied for the other year of the same assessee.
    14. In the case of re-opening of the case u/s. 148 the reason may please be communicated to the assessee.
    15. In case, the effect of Tribunal order is given in time then the refund thereof, may please be issued simultaneously with appeal effect is given.
    16. The interest on refund u/s. 244A may please be given in full as per the relevant provision.
    17. The income tax orders, adjustments and decisions on particular issue may please be made available on site to free access to the assessee to know the current status of his pending issues of a glance.
    18. Recently, CBDT had come out with a notification with a right to assessee to file appeal against CPC about TDS statements but since it is an administrative matter and assessee is helping to the department in its tax administration therefore, the system may please be so ensured that the assessee should not resort to legal remedies.
    19. According to FM the rising litigations with the taxpayers is a matter of serious concern. The events of the conflicts between assessee and department about tax administration should be minimised by simple procedures.
    20. Hon. FM have decided that-
      • Every person having income above 5lakhs will have to file return electronically compulsorily.
      • Every individual and HUF will have to give entire details of Assets and liability in his return of income for A.Y. 2013-14.
  3. TDS:

    1. Penalty for non-filing or late filing of TDS return for various reasons may please not be enforced.
    2. The implementation of penalty provision of TDS may please be liberised. Because TDS are administrative provisions which the assessee is doing on behalf of the department and in other way he is helping the department to collect the taxes.
    3. We have seen that every year circulars are issued from CBDT about the relaxation of the tax credit of TDS to give benefit to deductee and get correct tax credit. Instead a notification may please be issued to change the relevant provisions of TDS credit so that every time the assessee will get full credit of tax when there is no fault on his behalf. Such as 50% of TDS should match and entire tax credit on the basis of the same may please be given or TDS mismatch up to certain amount say up to Rs. 1lakh may please be ignored.
    4. Income Tax department should provide free facility to upload TDS returns or to revise the same. It will definitely minimize the TDS complaints.
    5. A system should be made internally at department so that the assessing officer can directly contact to the TDS deductor on line to get correction of mismatch of TDS of particular assessee. It will again minimize TDS complaint and expedite the administrative works.
    6. Recently, Hon. FM had dedicated a CPC cell for TDS to the nation. The awareness of the same may please be made in the assessee to take help of the same.
    7. The Hon. CBDT had come out with various instruction and notifications for the TDS management done by the officers in specified times. It is a welcome move but the actions are not completed in the given time frame. Therefore, it should be enforced to achieved the task in the targeted times. It could be able to smoothen the tedious job for TDS.

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