Anilkumar Prajapati

CBDT Should make it mandatory to obtain the CA certificate in case of exemption or deduction claim by the assessees is in excess of certain amount for other than audit and salaried assessees for verifying the correctness and genuineness of claim.

Due to large numbers of taxpayer and relaxation given by CBDT not to scrutinize the cases of small taxpayer unless valuable information is available with department, it is not possible for department to assess the correctness and genuineness of exemptions or deductions claimed by the small tax payer in each & every cases. This leads to increases the chances of claiming bogus & wrong deductions or exemptions in income tax return resulting in huge amount of loss of taxes of the department.

To stop this leakage of taxes, CBDT should it mandate for other than audit and salaried assesses to obtain the certificate from the Chartered Accountants and uploading the same certificate with income tax return that the claim is correct and genuine by clearly showing the section and the amount of deduction or exemption under that section. CBDT should fixed the certain limit and prescribe the format in which certificate should be issued by the CA.

This will help the –

  1. Department in savings the leakage of taxes as well as,
  2. Also taxpayer those who are unaware about conditions mention under that respective section for claiming the exemptions or deductions and claimed the deduction or exemption on the advice of wrong person which result in huge amount of penalty in case of scrutiny of cases if it is found that assessee has claimed the wrong deduction or exemption.

This certificate should be mandate only for non audit and non salaried assessees because in case of audit correctness and genuineness is checked by auditor and in case of salaried assessees it is the responsibility of the employer.

If the return is filed without certificate by the assessee then deduction or exemption claimed in the  return should be allow subject to compulsory scrutiny by the assessing officer.

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Category : Income Tax (25058)
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Tags : chartered accountants (524)

0 responses to “CA certificate in case of exemption or deduction claim by the assessee”

  1. Manish says:

    Thank You for starting a debate. Shoot

  2. BSKRAO says:

    ON DATE, MAJORITY OF THE PCAs HAVE CROSSED THE AGE OF 50 YEARS. THEREFORE, GOVT. SHOULD RELAX THEM BY EXPANDING THE DEFINITION OF ACCOUNTANT IN INCOME-TAX ACT AS REFLECTED IN DTC-2013. THIS WILL ALSO ENABLE OTHER PROFESSIONAL BODIES TO GROW & SUPPORT COMPLIANCE UNDER INDIAN TAXATION LAWS. IN PARTICULAR GOVT. SHOULD SUPPORT PCMAS AND PCS TO GROW FURTHER TO EXPAND THEIR MEMBER BASE.

  3. ananthavardhana says:

    compared to falsification in Politicians and government servants self-declaration of their assets, wrong claim of deductions by assessees is negligible. No need for any certification nor uploading of such savings.

  4. Anup Joshi says:

    Also I want to ask the question that why other professional bodies are setup if the only CA has made all work. CA furnishes compliance certificate, practices in the indirect tax court of law also make a cost audit. Then please tell us that what will be do other professionals like CS, CWA LLB and Income Tax Consultant. please Ministry of Finance and CBDT and also other professional bodies think that very carefully and provide a bread to the other professional bodies and also not created pain for other professional. Thank you very much. Please see And think very carefully and not created a.monopoly in the democratic country. Neither it will be harmful to other professional bodies.

  5. Anup Joshi says:

    Today in the finance market CA has made a monopoly in the particular Finance Act also matter in the direct and indirect taxes matter. Why the finance dept will need CA help at that time other same qualified professionals available in the market for example CS, CWA, LLB Income tax consultant. Exception to LLB other two bodies is same and also great leval knowledge of Finance Act and also Direct and Indirect tax and rules and procedure then why we need only CA why we are not use other professionals knowledge. Can IT Dept think that all CA are faithful persons many scam are make to use CA Knowledge. I have and received a case related for service tax matter in that case CA ingnor his cliant and the cliant pays penalty for CA ignorance also his CA not tell the truth and tell this cliant That he has furnished the return but actually he has not files the return. So now this incidence how anyone take faith on the CA Professional. Tell me the Goyal sir why are you shouting. Proove that every CA is fathfull person. Not even one CA is fraude or negligence.

    • Deepak Goyal says:

      I agree with Anup Joshi. Now the talks are in sensible manner. I do respect other professionals categories. I accept some CAs are not performing their duty in faithful manner.
      But pl never think that every CA is not faithful. It is not so. I accept other professional are also competent.

      I was shouting because some one said that CAs are overburdened. This is only rumour. It only depends on your management how to handle work. Due to rumours like this has created genuine problems to many competent CAs. If you have time then pl read the following.

      suppose a CA has good knowledge and wants to set a good practice and wants more and more work for which he is also competent. And there is another CA who has got degree but does not have any experience of work. The rumors that CAs are overburdened compelled the law makers to make a foolish amendment in the company law which is ” A CA can do audit of only 20 companies including private company due to which the work from competent CAs have been transferred to incompetent CAs who have only degree and nothing else.

  6. B S K RAO says:

    Deepak Goyal Sir,

    I do not think that you are professional qualified for the right job !

    • Deepak Goyal says:

      B S K RAO
      justify your comment. prove that my comments are baseless. you can not say anything whatever comes to your mind.
      if you do so, then I think you have lost your mind.

  7. Deepak Goyal says:

    B S K RAO my comment was against the comment given by one of you that CAs are overburdened. who are you to give comments on the potential of chartered accountant. Who has given the right to you to say that CAs are overburdened.

  8. BSKRAO says:

    I SUGGEST THE AUTHOR TO SHOW HIS IDENTITY IN PROFESSIONAL WORK & DO NOT RELY ON THE BADGE OF ANY PROFESSIONAL BODY. BASED ON MY EXPERIENCE, GOING WITH BADGE OF ANY PROFESSIONAL BODY WILL NOT SATISFY YOUR ESTEEM NEED.

  9. BSKRAO says:

    ATTITUDE OF THE AUTHOR INDICATES THAT HE DOES NOT WANT TO SHOW HIS PAR EXCELLENCE IN PROFESSION BY APPLYING HIS MIND, BUT WANTS TO WORK AS ATTESTING AGENT

  10. Sanal yasir says:

    It will only lead to unnecessary harassment of an assesse if you want to check correctness and genuiness of deduction claim then departmentshould ask assesse to upload reciept for deduction claimed.what change can CA certificate made it will only rise the cost of It return.

  11. B S K RAO says:

    When Notary Act & Rules takes care of attestation function & verification part of of every tax returns makes assesses liable for penal action, why once again certification from only CAs which results in un-employment of related professionals & also causing strict hurdle for voluntary compliance with added impact of revenue loss to our Govt.

  12. Vasudev says:

    forgive my typo error in original comment. Please read ‘ unified tax system for direct taxes’ instead of ‘indirect taxes’

  13. SREEDHARA PARTHASARATHY says:

    DEAR GOYAL SAB,

    YES, I AM FEARFUL OF UN-EMPLOYMENT, SINCE I BEING A TAX PRACTITIONER ENROLLED BY IT DEPT., EXCLUSIVELY FOR IT WORKS.

    I HOPE THAT YOU WILL PROVIDE ME FULL EMPLOYMENT, ON CBDT IMPLEMENTING THE SUGGESTION OF THE AUTHOR.

    THEN I CAN PROVIDE SINCERE SERVICE UNDER YOUR BANNER !!! ???

  14. CMA Utpal K Saha says:

    CBDT should may self certificate procedure instead of compulsory certificate by other authority. Self certificate along with affidavit for the same. This will save cost of the assessee.

  15. Vasudev says:

    The best solution is to do away with exemptions and implement unified tax system for indirect taxes. Any amount of scrutiny can only result in enriching either the proffessionals(who have better things to do) or the tax AO when caught in scrutiny. The genuine tax payers shall suffer due to further compliance.

  16. Deepak Goyal says:

    Yes, I strongly believe that such certificate from chartered accountants definitely help the revenue department from claiming bogus claims by tax payers. I have noticed many times that many unprofessional people to attract the clients claim wrong deductions and exemptions in their income tax returns to show that they have helped them in saving their income tax. Because such unprofessional people think there are only 1-2% chances to be detected by revenue department and in those cases they will handle by giving some bribe and think 98% cases would be untouched.
    Such step by CBDT definitely help in preventing the revenue loss. I appreciated this move.
    Regards
    CA Deepak Goyal
    M-9911063920
    Email: cadeepakgoyal1988@gmail.com

  17. MURAL I DAR S says:

    At present CA’s are overburdened and they are loosing their quality. At present only 65500 CA’s available in whole of India. How to find their empty slots? Let other professionals also allowed to lead their day to day life, otherwise they become unemployed and may not be available in the stream of joining the hands with the system?

    • Deepak Goyal says:

      This is only misunderstanding that CAs are overburdened. It is only the matter of management. If a CA has good strength of staff to handle various work, then how can it be said CAs are overburden. This is only wrong contention by unprofessional people that CAs are loosing their quality which is absolutely wrong. Such unprofessional people spread such rumours only under the fear of being unemployed.
      Regards
      CA Deepak Goyal
      M-9911063920
      Email: cadeepakgoyal1988@gmail.com

  18. SREEDHAR PARTHASARATHY says:

    PRESENTLY CAG HAS SUBMITTED A REPORT IN DETAIL ABOUT HOW THE CONCEPT OF 44AB OF THE IT ACT,1961 IS DEFEATED BY CA CERTIFICATES. ABOUT 2800 CRORES HAVE BEEN DETECTED LEFT OUT OUT OF ONLY 1% OF SAMPLE SCRUTINY. IF ALL THE CASES OF CA’S TAKEN TO SCRUITINY, IT MAY WORKOUT TO 15 LAKH CRORES. IF OTHER RELATED PROFESSIONALS ARE NOT TAKEN INTO CONFIDENCE BY THE DEPT, VOLUNTARY COMLAINCE WILL BECOME ANOTHER NIGHTMARE. PLEASE THINK ABOUT THIS??? NOT ONCE… TWICE…. THRICE….. MANY MANY TIMES…….????????????????????

  19. suresh G says:

    Introduction of either certificate of some system of obtaining Unique ID will definitely benefit as large no. of assessees including salaried are claiming bogus / excess deduction on a/c of interest on housing loan without even having one and/or claiming same before taking possession of property and excess deduction under section 80 C.

  20. PRADEEP ASTHANA says:

    Let there be bond of Trust between DEPT and Tax Payers.I don’t think so classified Tax payers dare to claim wronng deductions in their ITR .more over they ought to know two popular sections i.e 80C and 80D for deductions .CA certificate requirement will only increase their Cost of filing ITR .Moreover Let Dept Officials do their bit while processing to justify their Salary and Not to take the shield of CA Certificate for Deduction even.

  21. PRADEEP ASTHANA says:

    Let there be trust bond between dept. and Tax payers.Most of the Tax payers, I think, are genuine and do not dare to claim wrong claims ,since there are very few sections i.e 80C,80D are there which they have to know about.Certificate from CA will only increase their cost of filing ITR and Moreover LET Dept Officials do a bit ,to justify their Salary and not Only take the shield of CA Certificate while processing the ITR.

  22. B S K RAO says:

    Hon’ble Ministry of Finance, Govt. of India entirely depending on only Chartered Accountants for issue of various Certificates/Reports under Income-Tax Act. On date, there are 46 Plus Mandatory CA Certificates in Income-Tax Act. Because of these CA Certificates, other four class of Non-CA Tax Professionals Viz. Legal Practitioners, Cost & Management Accountants, Company Secretaries and Income-Tax Practitioners who are also authorized to prepare return under Rule 12A of Income-Tax Rules, 1962 read with Section 288(2) of Income-Tax Act, can not exercise the authority granted in the statute fully & independently, in fact they have been ignored. Such dependency on one Professional body is a dangerous trend & leads to monarchy in our democratic setup. Therefore, suggestion of the author if considered by CBDT will have negative impact on revenue collection.

  23. CA MOIZ LOKHANDWALA says:

    Nice suggestion. It will go in long way to improve the tax compliance by the assessee.

  24. CA.A ROY says:

    CMAs and CSs are have equal expertise to issue these certificate.

  25. Naveen Rishi says:

    It is high time that the department starts trusting the income tax assessees. The department works under the assumption that every assessee is a thief and hence, the attitude is not at all assessee friendly. Even genuine claims of the assessee are doubted. I do not think that a CA certificate will change things. The change has to come from the department and their thought process.

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