Income tax processing:
I would like to take up the processing of Income Tax Returns and assessment done while ITRs were filed manually. CBDT used to prescribe tax return forms and assessee used to fill the forms and strike out information that did not apply to them. In addition to this, they used to attaché tax computation, balance sheet, profit and loss account, tax challan and other documents.
Processing of ITRs through System:
Consequent upon the changes in the accounting process, now returns are being processed through the system and assessee are getting notices. In most of the cases, assessee is facing issues arising of this process as under:
These issues when raised before the help desk or “E-nivaran” tab in the e-filing web site, most of the time we get vague answers and never get the final expected result and the ticket gets closed.
Sometimes, we are asked for not quoting assessment year and then the ticket gets closed. Here, one should know that without quoting assessment year the ticket is not generated.
Now we have following suggestions for this.
1. Let the processing be done as per the present way and allow the assessee to file rectification by filing of revised xml (as per the present case).
2. In case the return is processed under section 154 the way assessee filed then he will accept the case and do the needful.
3. In case, rectification is not processed as per expected xml filed by the assessee ,then the assessee should be allowed to file tax computation sheet in pdf form. This return will be checked manually by departmental CPC staff before processing and correct xml so that the return is processed as expected.
Most of the tax consultants and Chartered Accountants are knowledgeable and conversant with Income Tax Laws. At present most of their time is spent on following up, filing and generating xml where they are not convergent and make repetitive mistakes. It ultimately affects assessee and the Income Tax Department.
Further, Government is advertising that Individuals can file their ITR without taking help of tax consultants. But in reality, most of the time either the assessee file their returns themselves or are taking help of Cybercafe operators who does not understand anything about Income Tax Act.
This is also causing frauds and illegal allowance of deductions and exemptions for which they are not entitled for.
This results in heavy tax demand to the assessee who are then approaching tax consultants for rectification. But my personal experience says that these returns cannot be rectified online as most of the time some of other income head is not properly calculated and thereby not allowing to file rectification. Even if it is filed, the revised processed returns do not change and we don’t get returns properly rectified.
We, therefore, request to transfer such cases to Assessing Officers who are most of the time not taking action immediately, resulting in making assessee defaulter on account of false demand.
Consequently, the hypothetical and unreasonable Tax Demand is never being reduced and lots of physical notices are being sent to the assessee which is a heavy cost to the Department and against the national interest of the country also it is violating the principles of Natural Justice.