BCAS gives representation on several hardships caused to the taxpayers

Sr.

Issue

Difficulties faced by the taxpayers

Our Suggestions

1.

Providing correct TDS credit

·  There are clarificatory circulars from CBDT that when the tax has been   deducted by an employer, the assessee cannot be asked to pay for it. Such clarificatory circulars must be considered and the system must be upgraded accordingly and demands if raised must suo motto be automatically stayed in such circumstances.

·  To ensure appropriate credit as per provisions of section 199 read   with Rule 37BA wherein the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee subject to appropriate declarations being filed. The certificates issued by the deductor and the appropriate details provided in the return of income by all parties concerned must be considered. Accordingly, appropriate TDS credit must be provided to other than the deductee in whose hands the income is assessed.

2.

Satisfactory solution to be provided for grievances raised in Income-tax Portal

The responses provided in the e-grievances raised on the Income Tax portal are unsatisfactory and do not offer detailed solutions.

Also, many times incorrect solution is being provided without considering facts of case even after complete details being provided by the assessee.

The solutions provided need to be detailed in nature. The solutions must ensure that the assessee can smoothly adhere to the compliance requirements receive assistance from the Authorities with correct facts and figures.

3.

Demand rectified by AO not deleted by CPC

Post rectification of demand by AO, the outstanding demand is not deleted in CPC portal even after several communications.

The CPC system should consider the rectifications accepted by the AO and reflect the necessary changes in its system records. There must be an online solution where CPC’s outstanding list is updated the moment the AO takes required action. This will help in immediate clearance of demands on AO taking necessary action.

4.

Various demand for a single Assessment Year

Various demands in a single Assessment Year under different sections appearing on CPC website like section 143(1), section 143(3), section 154.

The system must update the status of the demand in line with the relevant section so that the same demand is not being replicated under different sections.

5.

Order giving effect not being considered

The cases where assessment order has been passed, under section 143(3) the effect order is not being given by CPC. Due to this demand is still outstanding under section 143(1) or section 154.

The CPC system should consider the effect order and the reflect the necessary changes in its system records.

6.

Rectification of data entry errors on the basis of factual details and supporting documents

· We are all working in today’s scenario under the   computer environment, wherein the figures are punched in manually. There are possibilities where certain typographic / human errors occur in feeding the data such as deduction under section 54/54E/54F/54EC, etc. not punched in correctly by mistake, which results in increase in gross total income as compared to the actual income. Hence, due to system error some figures are linked and do not reflect the correct details of the assessee.

There should be mechanism where the CPC can rectify the demand after verifying the facts and documents Hence, in such cases a facility of uploading documents should be provided in respective assessment year. This will go on to reduce avoidable litigation.

· Where rectification applications for the above   aforesaid cases are filed with CPC the response received from CPC is that the income cannot be reduced below the Gross Total Income and hence, the