DISTRICT TAX BAR ASSOCIATION MOGA

#490, Basant Singh Road, Moga-142001

Ref No.  …………………

Date: 05-04-2021

To

The Hon’ble Finance Minister of India,

Smt. Nirmala Sitharaman ji,

Ministry of Finance,

North Block,

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.

Hon’ble Madam,

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

Thanking you,

Yours faithfully,

Rupender Kansal
Advocate
President

Cc TO Sh. Anurag Singh Thakur MOS for Finance
The Chairman, CBDT, North Block, New Delhi

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8 Comments

  1. pyro technologies says:

    we are fed up.ESPECIALLY SBI who do not calculate tds properly and make hell a lot of mistakes.My 26AS for ay2020-21 of sbi is around 200 entries.They don’t file TDS returns in time.Shocking to know why they have deducted TD on SBI account

  2. N Kumar says:

    Hitler is Back…..Govt Ke 100 Khun Maf hai…..Honest Tax Payeryat Se yadi Ek Galti Ho jaye to Penlty aur Intesret ki Bochar ho Jayegi us Par. Ye BJP Govt Ki Galti Nahi, Congress ki galti hai jo Desh ko Apne Lalla (RG) Moh Ke Age Desh ko Ek Stong opposion Nahi De paa rahi.
    Tax Payers ki Abhi Party (Fajiyat) Sur Hui Hai…..

  3. RAJENDRAN RAJAGOPAL says:

    The e-campaign introduced recently is placing the assesses under severe strain due to the faults of Banks.The observations recorded by CBDT are of recent origin, require sufficient time for the assesses to analyse and report compliance.Opportunity should be given for revising the return for AY 20-21 at least till 31-5-2021.

  4. GANDHI MOHAN BHARATI says:

    The techies leave something or other and sadly we have to fight and there is no time given to fight by the Government. Last year a Bank reported that I had fresh deposits to the tune of 78.00 lakhs. All request to the Bank went unheard and luckily an advocate friend f mine issued a notice to the Bank stating that they had committed a fraud on me by accepting the deposit and NOT have issued the receipt.. Luckily the entire thing was reversed on 30 July; Otherwise I would have been in deep trouble. Enactments in the present form and style need a thorough overhaul and an opportunity to be heard needs to be given to the Assessees. Blindly following reckless reporting and bad consequences seems to be the order of the day

  5. Manoherlal Rohira CA says:

    I am really shocked the Banks are working. As far as my knowledge says Banks deduct TDS every quarterly. Then they have submitted maturity value figures. I had similar experience with my Bank where they calculated Interest Re 10 less

  6. Manoherlal Rohira CA says:

    I am really shocked the Banks are working. As far as my knowledge says Banks deduct TDS every quarterly. Then they have submitted maturity value figures. I had similar experience with my Bank where they calculated Interest Re 10 less. I have papers with me. I lodged complaint with Bank with Bank but they never bothered. Even one retiring manager told me that he can credit the amount but I told him that they should make changes in systems rather than giving petty amount to me. When they give such treatment to us what about general public

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