By C. N. Vaze, Chartered Accountant
Is It Fair
1. Introduction :
In recent years, all the Government Departments are
embarking upon massive computerisation. Use of technology is always welcome as
it is expected to enhance efficiency and transparency. In the Income-tax Act,
there are provisions that are progressively making on-line submission of tax
returns and TDS returns compulsory. The amendments in S. 203, S. 206C(4) and
other relevant provisions are on cards for past few years. The implementation
is being postponed obviously on the ground that the whole machinery is not yet
geared up. It is a dream to allow on-line credit of taxes deducted at source
as well as of other tax-payments. There can be no two opinions about the
sanctity of the purpose. However, there appears to be excessive enthusiasm in
implementing it in the processing of returns. This is causing tremendous
hardship to the assessees.
2. Chaotic processing u/s.143(1) :
2.1 For A.Y. 2007-08, thousands of assessees have been
receiving intimations u/s.143(1) almost invariably resulting into sizeable
amount of tax-demand. The common reason in all such cases is non-giving of the
credit for TDS, advance tax and self-assessment tax.
2.2 Corporate and a few non-corporate assessees have been
pushed into the regime of on-line submission of returns. So also, for those
who are permitted to file paper-returns, are not allowed to submit any
enclosures. All the information is to be filled in the return itself. There
are columns requiring details of TDS (such as TAN of deductor) other tax
payments (such as BSR code or CIN of the Bank). On the basis of this
information, the Department is expected to allow credit. The TDS certificates
and receipted challans remain with the assessees.
2.3 The on-line information available with the Department
almost never matches with the claims made by the assessees. There are several
reasons for such discrepancies — such as non-filing of e-TDS returns by
deductors, incorrect entries made by deductor, defaults committed by deductor,
errors committed by banks in transmitting the information, other technical
problems at NSDL or other monitoring agencies and so on. On none of these
factors, the assessee has any control. He only holds original certificates and
challans. Gradually, even this is sought to be discontinued.
2.4 The obvious result is that there are huge tax demands,
panic among individual taxpayers, applications and correspondence for
rectification, repeated follow-up with the Department and all those unhealthy
consequences which are too well-known. It may so happen that the bureaucrats
may even refuse to grant credit unless the details are seen on their ‘screen’.
They will make the assessees and their representatives run from pillar to
post, with a sword of tax-demand hanging on their heads.
2.5 Needless to state that for such services, no one will
be willing to pay fees to the concerned professional. It will be a colossal
waste of man-days of our staff, our professional time, stationery and
unrequired effort. A totally futile exercise. It is a great wastage of
resources, causing unbearable botheration to all concerned — including the
staff of the Department.
3. Suggestions :
Wherever there is a mismatch between the claim and the
on-line information, the Department can send a simple interview-memo or
communication, asking the assessees to furnish relevant documents. Apparently,
the limitation of time prescribed in S. 143(1) proviso — may be a hurdle. This
can be overcome by suitable administrative instructions or even by an
amendment. It is not to suggest that the progress towards computerisation
should be stalled. But efforts should continue with a little application of
mind and human touch and without causing harassment to the ‘tax-payer’.
