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Income Tax- Tax Deduction at Source (TDS) -Not assesses’ fau

By : Mahesh Kapasi on 30 September 2009 Report Abuse Print Print this


MAHESH KAPASI & CO                                        E-Mail:
Chartered Accountants                                     Phone: 2686 8147
B-49, Gulmohar Park,                                                                                                                                                       
MAHESH KAPASI                                                                              New Delhi-110 049
Ex –Member: AMIMA, AMIBM, ACEA (London), MIIA (U.S.A.)
Reference No:                                                              Dated: September 29, 2009
 Income Tax- Tax Deduction at Source (TDS) -Not assesses’ fault, Sir, why they are suffering?
It is good that the Director of Income Tax (Systems) New Delhi has send E-mail to PAN holders to check their TDS etc as recorded by it (Form 26AS) for AY 2008-09 & 2009-10. Since in most cases all the TDS / tax credits etc by deductors is not reflected as per their E-Mail in most PAN holder cases. It has further asked to intimate differences / tax credits etc not reflected in their statement.
For its correction it says the reason is “The Deductor of TDS ‘has not filed quarterly TDS/TCS return” The corrective action it says “Follow up with deductor / collector to file TDS / TCS return”
For assesses to get it corrected by asking number of deductors of TDS etc is a wholesome, tedious and time consuming process. It is also not the duty and the authority of assesses to ask and suggest the deductors of TDS including some nationalized banks (who are in default) - to file their TDS returns to the authorities-this is the one and main reason that such TDS amount deducted by nationalized banks is not reflected in the PAN holders account in the form 26AS!
For this reason only many of assesses refunds are not send for even A Y 2008-09 Though there are many refund cases for AY 2007-08 for which still assesses have not received their refunds due from Income Tax Department.
For the default of TDS deductors why individual assesses are required to suffer?
It is suggested to allow TDS certificates to be attached with filing of Income Tax Returns for not only AY 2009-10 but also Income Tax Assesses be allowed to file a photocopies of all TDS etc as claimed for AY 2008-09 by giving reference of acknowledgement number / photocopy  of their income tax returns filed  so that they get their  tax credits / refunds due, of course the Income Tax Department can first verify directly the genuineness of such TDS certificates  issued by deductors / tax credits  i.e., from deductors only and rely on TDS certificates as claimed by assesses as per their copies filed by assesses.
(Mahesh Kapasi)

Published in Taxation
Views : 4239

Source : Original Own,Original Own

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1 Comments for this Article



Wrote on 25 October 2009

Hi, You have correctly pointed out some of the inconveniances of the new provisions. The law maker assumes that the facilities and obidiance of LAW is a inborn QUALITY in Bharat. They even dont bother about, before implimanting the new policies that how the government undertaking, such as post office, banks, municipal councils and schools etc are implementing the TDS policiy. Every change in the TDS causing a rupee loss to those who are suppose to collect & pay as the government is not providing the software facility free of cost. IS THIS CORRECT? The taxation machinery is not even empowered by man & machines to chek up the defalters. The ministers & top officer of cabinet level are far away from ground level. Expending the indivindual assesses amounts, time & energy for government collection is lawful? The worst part is error, ommission & mistakes done by government machinery has no punishments but for assessee disallowance of expenses, interest, penalties & impresionments.

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