We, in our country, have very specific set of law makers and they make the rules and regulations, specially the rules and regulation affecting the Tax payer public in a very strange way. Sometimes they brought a new of rules and procedures in the name of tax reforms and user friendly and then in a year or two they revert back to the more stringent procedure and this practice is continue since year to year and nobody is there to stop this system of “trial and error Method” which they are practicing in search of excellence at the cost of Tax payer public.
Now they have introduced a new system of filing of ITR in case of audited assessee in which CAs has to E-files the audit report and then assessee approve it and after that the ITR can be e-filed by the assessee. Further the CA has to E-file the Balance sheet and profit and loss account also. I practiced this system and it is very interesting system but what about wastage of time and resources. Once we have a system in which the return and audit report both have to be filed though it was in paper format and then suddenly they brought a law in which No audit report was required to be filed. The return was called paperless return and in that system all the figures of Balance sheet and profit and loss account are required to be filled in return itself and further the ITR also required most of the features of the form 3CD also (with some exceptions). The return especially ITR -4 become a cumbersome activity but now the professionals have adopted it successfully in last two years.
But now see in case of Audited returns what they have done? Now you have to file the audit report and financial statements in the form of 3CD/3CB, profit and loss account and Balance sheet and also filled the figures of Balance sheet, profit and loss account and 3CD in the ITR also. What is this? If they want the Audit report and financial statements to be E-filed then they should have done away with the compulsion of filling the figures of Profit and loss account and Balance sheet and 3CD in the ITR by introducing a very simple return for the Audited assesses.
The law makers might have the compulsions for introducing the new system and Nobody should question (Who can?) their right to introduce a New and sophisticated system but where is the logic in seeking the Double information at the cost of time and resources of professionals and assesses.
Practically this is the system in which our law makers have the habit to work. They first abolish the Gift tax and then suddenly brought it back and now adding one or more thing to it every year (See lot of additions to Section 56(1) (vii). They introduced two most complex form of tax in the name of FBT and BCCT and then one day they realized that it was a mistake and taken back.
What is the purpose of making the taxation law and changing them every year? The case of ITRs which we are seeing in last 10 years is a good sign of indecisiveness on the part of Law makers. First they have average 10 pages return forms and then they gave us only one or two page return forms and then again they increased the size of the return to unlimited pages. Is there any connection between the collection of the revenue and the size of return forms?
CA Sudhir Halakhandi – CA Abhas Halakhandi
“Halakhandi”, Laxmi Market, Beawar-305901(RAJ)
Cell- 9828067256, E-Mail – sudhir@halakhandi.Com