Why can't TDS or Advance tax be c/f to subsequent assessment years?

Tax planning 227 views 2 replies

Sundararajan S

Final Student of ICAI

1764 Points Joined December 2015

Friends, I just share my thought process. Say if an assessee files return with refund of atleast 50% of TDS or Advance tax, the department grants refund and then invites such cases for scrutiny and it takes time, money, sometime bribe etc. Instead, like VAT, if the income tax department provides c/f of TDS, Advance tax, to the subsequent assessment years, it shall be adjusted in subsequent years. This will avoid so many problems, red tapism, and the outflow of funds for Government will also be limited. Just a thought process. I may be wrong.

Replies (2)

S. Shiroor

Others

1212 Points Joined July 2015

My thoughts are as follows

The ASSESSEE should be given the option in the RETURN whether the REFUND should be carried forward as ADVANCE TAX FOR NEXT ASSESSEMENT YEAR.

Option of Part Refund and part C/f as advance tax option should also be there.

raghavan

self

611 Points Joined August 2011

practically not possible as some years litigation will be pending, next yr refund will be held up for clarification and also delay interest for tax due and penalty to be calculated and refund amt also carries interest. current method is best suitable as refund paid electronic every year and penalty calculated separate for each ass. year. hope others will agree.