Recommendation and Suggestion about TDS to NSDL

TDS 1148 views 4 replies

Harpreet

* * * * * *

1670 Points Joined March 2008

Dear All,

I need your suggestion on the below mentioned matter:-

If a company has deducted the TDS @ 20% of an assessee and filled the return but how can the assessee come to know as well as Income Tax Department comes to know that who is the correct assessee whom TDS has been deducted @ 20% and has been deposited. But how can assessee can claim the same as deduction as Income Tax (TDS) at the time of filling his/her/its ITR (ITR-1, 2, 3, 4, 5, 6).

As we all aware about that and listening lots of query on CA Club as well as on other web portal that the assessee have been filled his/her/its Income Tax Return but Income Tax Department has been denied to give the credit of Income Tax Part (TDS) for which the deductee was unable to produce his/her/its PAN but after that he quote the PAN. Whether the assessee has update the records with the deductor or not but how can a assessee can claim the same?

In my view NSDL or Income Tax Department should introduce some changes in this rule and be more friendly with the assessee to overcome this issue.

Suggestion:

1. There will be a option and should be mandatory to file with next TDS return to give detailes of deduction under @ 20% in previous qtr, whether the assessee has been quote the PAN or not.

2. There will be option to correct incorrect PAN which were filled in previous TDS Return so that credit of TDS will go to correct assessee.

Please also give your valuable comments too if required.

Thanks & Regards,

Harpreet Singh

Replies (4)

KIYOSH

TAX CONSULTANT

332 Points Joined July 2009

I think assessee provide his/her PAN details to company & company should revise TDS return than only assessee will get credit.

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

20% TDS is imposed as penalty for non furnish of PAN

if the deductee has provided pan before the submission of TDS return then dedoctor can consider his number at filing, otherwise no chance to recover such tax.

mere to put a PAN where 20% TDS has been deducted, the TDS return revision, is burden to deductor, and for this act he was not liable coz its duty of deductee to furnish the PAN to dedutor, which is escaped by him and result is 20% TDS

Say a TDS has been deducted in 2011 dec @ 20% and deductee applies for pan in dec 2011, get in march 2012, and force the deductor to revise return............

department has records when PAN is applied and when pan is issued, so the TDS deducted before that date may go in lapse.

Harpreet

* * * * * *

1670 Points Joined March 2008

As you all know that No one company/Firm will revise the TDS return for a single person / assessee.

If you face and manage the reconciliation of Form 26AS and Form 16A of the different companies, the same is never in reconciliation with 100%. So what steps IT and NSDL should take for this issue????

As many of the taxpayers are facing the problem to get credit of TDS.

This is my only the concern..................for which someone, IT or NSDL should rise and take initiative.

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

in past few years before the nsdl credit, many assesees have claimed TDS on the basis of certificates issued of closed companies and forced the officers to allow refund, as there was no system to reconcilate but to send inspector and verify the concerned party / ITO where the party submit TDS return, and there was nothing found, instead the form 16/16A was not to get denied fully,

also there are instances where the deductor issued multiple TDS certificates on single payment, and every body claimed it .......

to resolve the issue correct credit through NSDL system incorporated, and its based on realtime records, so that nobody can misuse the revenue credit.

if the TDS is deducted in proper way and return is submitted with correct data then there is no hassle to claim it, since last 5 years form 26AS is in existance to check the correctness of your TDS credit.

OLTAS is to verify your challan paid details with NSDL, but how many taxpayers bother about the correct entry?

again a strange situation appears nowadays, some person claims that he has TDS deducted certificate of 30000/- and have non taxable income.

in any case where the tds is applicable with PAN, can be more than 10% ( with or without cess thats ignored for now), but a question arise that when 300000(minimum) taxable income was there which was basis of TDS , what magic made it non taxable ?

what are the options in hands of ITO in such situation ? especially in hands of CPC for e filing, whsn such person file ITR-1, ITR 2 and claim whole TDS in that return.........

if anybody has solution then please share.