In Reply To :

Issue with CYLA auto-computation in Income Tax Online utility for ITR 3

Thanks to Mr. Asha Kanta Sharma for the detailed response confirming that my beef with the ITR utility's handling of Sch CYLA (non-beneficial default auto-setoffs of Losses with no option to override this) is a valid complaint of non-compliance of IT software with Inc Tax law...
Just an FYI update on my interaction with IT Dept on this issue after that :
- First raised a Grievance in the IT Portal in Jan-2024 against the ITR Utility for AY 2023-24 regarding the illegal & autocratic handling of CYLA section, and consequent higher Tax outgo for me. This Grievance kept getting bounced around between various IT Depts for a response, with each dept's handlers closing it as "not a problem of my Dept". I re-raised the Grievance 2-3 times saying my issue remained unresolved... Tried to tell them to assign the Grievance to the Central IT Software team instead of to Asst Commissioner's Offices (who had no real solution for the problem), but that didn't go anywhere either... My Grievance kept getting closed with idiotic responses... It all showed that most Income Tax Officers neither have a good understanding of Tax law, nor have the ability to grasp an issue raised against their software's behaviour and know whom to send the issue to for resolution...
Then fortunately got a contact in the Software Quality Assurance team in Central Inc Tax office in Bangalore, and explained my problem of CYLA to that person... After checking with others in their team, this QA person confirmed to me that this CYLA handling was indeed a mistake in their Software Requirement Specification itself, not just an implementation error... but that it cannot be fixed easily (definitely not for AY 2023-24) as they have to re-write the ITR Specs. So, I suggested that they can let the Default Setoffs code in CYLA section stay as is, but just change the User Interface to allow CYLA setoff values to be manually overridden by the Tax Payer.
That QA person accepted this suggestion, and got the IT Software management team to approve this change to the code of CYLA section of ITRs in the next year's ITR utility. So, in the ITR Utility for AY 2024-25, the CYLA section had an option to let us override the default setoffs computed by the system. It still had a validation to check that the manually entered values complied with rules for setoff, but you could change the auto-computed default setoffs.
However, this change was made only in the Tax Payer's ITR utility & ITR validation code in the Portal for upload of ITRs. The change was missed in the internal software used by the IT Dept for checking / processing filed ITRs. So, while processing my IT Return for AY 2024-25 with manually overridden values in CYLA, the Inc Tax team reverted the values back to default setoffs, and my Refund was reduced... Had to raise another complaint about this, and submit a request to re-process my ITR and re-compute my Tax dues... This issue was finally resolved in Jan-2025 with correction of CYLA handling code in IT Dept's internal software as well.
Just saw that this override option in CYLA is retained in the ITR-2 Excel utility for AY2025-26. Hopefully it will also be there in all the yet-to-be-released ITR utilities as well as in ITD's internal Returns processing software for this and subsequent years...
So, use the CYLA override option (while it lasts) to gain maximum advantage from your Loss setoffs... Don't just live with defaults set by the ITR utilities.
Krish.

Utilisation of cgst cash ledger balance first to pay cgst liability instead of cgst credit ledger ba

Dear sir
I have balance in cgst cash ledger and balance in cgst credit ledger also
Sir i have lgst liability and cgst liability to pay but system generated payment utilises cgst credit ledger balance first to pay cgst liability
And due to this it shows additional cash required to pay igst liability
Here i want to pay cgst liability first using cgst cash ledger balance and balance in cgst credit ledger balance to pay igst liability
Can i do so

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