DISTRICT TAX BAR ASSOCIATION MOGA
#490, Basant Singh Road, Moga-142001
Ref No. …………………
The Hon’ble Finance Minister of India,
Smt. Nirmala Sitharaman ji,
Ministry of Finance,
New Delhi- 110001
Sub: Wrong reporting by banks to Income Tax department — Its solution and Request to extend date for revising Income Tax returns for A.Y. 2020-2021or allow rectifications — regd.
It is respectfully submitted that the tax payers started receiving messages through mails/sms from Income Tax Complian. [email protected] under the caption e-Campaign – High Value Transactions for AY 2020-21 — )000CX1234X. The said mails were sent on the basis of information received by the department from third party through reporting portal. Resultantly the assessee has to reply the same in compliance portal. In this regard it submitted as under:
1. The banks have almost reported wrong information to the department. The interest reported is twice/thrice than interest shown by the assessee in the income tax return. The banks have reported interest on the basis of consolidation as per form 26Q. Then they have reported on the basis of Form 26AS and thirdly on the basis of individual FDR basis. Some banks have reported the FDR values also. This has created big problem for professionals as to how to reply the wrong and lengthy information in compliance portal
2. Moreover many banks have also committed one serious mistake by not reflecting the interest below 40,000/- in Form 26Q, resulting in non-availability of interest in Form 26AS. The government had only relaxed the TDS norms upto Rs. 40000/- but never relaxed the provision for not reporting the interest upto Rs. 40000/- through Form 26Q. Resultantly many assesse omitted to show the interest which was not reflected in Form 26AS, which otherwise was the responsibility of the bank to make the same reflect in Form 26AS.
3. The assessee have in many cases have shown the interest in profit & loss account and have mentioned while filing the income tax return that the interest has been shown under the head Business & Profession. Now the third party is reporting the same interest under the head Income from other source. The department before issuing the E-campaign message must match the information with income tax return filed and if the value of interest matches with schedule BP, then there is no need to send the message.
4. The department though started this campaign in the interest of general public but truly speaking very late in the month of March 2021, some bearing date as late as 28/03/2021.
5. Resultantly the tax payers themselves or through their counsels failed to reply the same for the reasons mentioned above. But where there are under reporting of interest or any other income by the assessee due to bonafide mistake, there was no time available for revising the return.
6. Through this representation it is requested to direct the third party to file the correct information by revising the information in reporting portal by 15the April. so that suitable reply can be given by assessee or their counsels in compliance portal.
And if there is bonafide mistake on the part of assessee then a chance must be given to revise the same. Otherwise assesse will suffer a lot due to genuine mismatch. AND if the department is not interested in extending the time for revising the return then the assessee must be allowed to file the rectification, which at present cannot be fled as the department utility does not allow rectification if the GTI is increased than what has been shown in original return. Kindly do the needful in the general public interest and oblige
Cc TO Sh. Anurag Singh Thakur MOS for Finance
The Chairman, CBDT, North Block, New Delhi