Is something wrong with the I T Act 1961
As per news item in Financial Express of 10 September 2020 the refund of income tax from 01/04/2020 to 08/09/2020 is given below:
• Total Refunds: Rs.1.01 Lakh Crore to 27.54 lakh taxpayers
• Personal income tax Refunds: Rs.30768 Crore to 25.83 lakh individual taxpayers
• Corporate Tax Refunds: Rs.70540 Crore to 1.71 Lakh corporates
The question arises why taxpayers had to pay extra income tax and then demand refund of excess tax paid. Whether all claims by individual taxpayers were genuine? Sometime back it was reported that smart people are able to fool IT Authorities.
Some of the reasons could be:
1. Whether TDS rates are high
2. Whether there are too many exemptions
The possible solution is to reduce TDS rate to 1% for every one as all transactions are now recorded in Form 26AS. The balance amount of tax can be paid as Self - Assessment Tax prior to filing the I T Return.
I request all local circle members to comment why this is happening and what is the solution for taxpayers to pay only the exact amount of tax. more
• Total Refunds: Rs.1.01 Lakh Crore to 27.54 lakh taxpayers
• Personal income tax Refunds: Rs.30768 Crore to 25.83 lakh individual taxpayers
• Corporate Tax Refunds: Rs.70540 Crore to 1.71 Lakh corporates
The question arises why taxpayers had to pay extra income tax and then demand refund of excess tax paid. Whether all claims by individual taxpayers were genuine? Sometime back it was reported that smart people are able to fool IT Authorities.
Some of the reasons could be:
1. Whether TDS rates are high
2. Whether there are too many exemptions
The possible solution is to reduce TDS rate to 1% for every one as all transactions are now recorded in Form 26AS. The balance amount of tax can be paid as Self - Assessment Tax prior to filing the I T Return.
I request all local circle members to comment why this is happening and what is the solution for taxpayers to pay only the exact amount of tax. more
Viewed by 201
It has been observed that many a times Banks are cutting TDS even after you have submitted 15 H Form.This reflects poor quality of service by Banks.This is more in Nationalised Banks. more
Sep 18
Exact payment of income tax is just possible if one has only salary as his income. If one had income from other sources like interest on FDs for various dates of maturity, to calculate the tax is difficult and therefore best option is to pay extra and claim refund at the time of ITR filing. I would like to invite the advise of Hon'ble members about filling of ITR forms. It is simple to fill ITR (Sugam) forms on line or offline. But when some other income, other than what is already covered in the form, is to be shown for payment of Income tax, it becomes a tedious task to fill the other ITR form. For example ITR 4 (Sugam) form is for an individual having income from salary & profession/business up Rs.50 Lacs. The form has only 5 pages to fill which are easy to fill. But, if the individual has made any transaction of residential property, he is required to fill ITR -3 form of about 70 pages. If the Govt. could prescribed a separate form about property transaction to be attached with Sugam form as annexure or otherwise it would save a lot of time and energy for the tax payer and the authorities concerned. more
Sep 16
TDS rate on professionals is very high i.e. 10%. if a person having total revenue of 10 lacs, TDS will be 1 lac. if the professional has no other income , taking 50% of revenue as taxable as per law his total income is non taxable without claiming any other exemption. Therefore refund is alaways there. Govt should rationalise the TDS rate and obtaining TDS exemption certificate should be online for the taxpayer. more
Sep 12
I think this might be mainly due to TDS deduction. By the way the government also pays interest vpn these refunds. Your suggestion of paying 1% TDS and collecting the IT later may lead to further delay and chasing the tax payers. They can perhaps reduce the % TDS deducted based on data accumulated. If the individual owes balance taxes he may be liable to pay penalty for underpayment more
Sep 11
