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- Court makes life less Taxing - Form 26AS
- How to Avoid errors while filing IT returns
- Charity Can fetch you Tax Benefit
| Court makes life less Taxing - Form 26AS Posted: 16 May 2013 02:26 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) Many tax payers have been subject to delays in getting refunds for the additional taxes paid by them or on account of the Tax Deducted at Source ( TDS) being more than the tax payable for a year. In addition to these, with many tax payers opting to file their returns online using the e- filing utility provided by the Income Tax Department ( the Department), the problems relating to non- grant of TDS credits and refunds have raised many folds.
In pursuance to the same, a Chartered Accountant had addressed a letter to the Delhi High court in April 2012 highlighting the various problems faced by the tax payers including mismatch of the TDS credit with the online statement of taxes called Form 26AS and the rectification processes required for the same. He even claimed that various tax payers were being harassed because of the Department's fault. The Honourable High Court took judicial notice of the letter and converted it into a Public Interest Litigation ( PIL), thereby, directing the Department to the queries raised by the CA in the letter along with other queries that the Court had raised in this matter. The department in its detailed reply did accept that tax payers are facing difficulties in receiving credit of TDS and refund on account of adjustments towards arrears. The Honourable High Court took notice of all the points raised in the CA's letter and replies received from the Department and issued certain guidelines to the Department vide its order dated 14th March 2013. The order is a detailed 45 page order, wherein, the Court has given detailed directions to the Department on various matters. The following paragraphs highlight some of the important points that tax payers need to be aware of. Wrong or fictitious demand Post setting- up of the Central Processing Centre ( CPC) at Bengaluru, which handles the processing of the returns filed online by tax payers, the tax officers were required to organise and upload data relating to the demands and refunds due to various tax payers with the CPC in order to facilitate processing of returns filed. In many cases, tax payers have observed that incorrect and wrong data regarding the demands and refunds get reflected in the assessments made by the CPC in response to the returns filed. The Court observed that the Department had issued a circular in which the burden has been put on the tax payer to approach their tax officers to get the records updated and corrected by following the Rectification process. The Court also noted that it is not right on the Department's part to expect the tax payers to follow the rectification process, as it entails substantial expenses and also defeats the main purpose behind computerisation of records. Requests for has to be closed by a proper order and also communicated to the tax payer. Adjustment of refunds Under the provisions of the Income Tax Act, in case the tax officer wants to adjust the refund due to a tax payer with any demands pending against him; a prior intimation to the tax payer needs to be given. The Court observed that this process is not being followed at the CPC level, since the computers itself adjust the refund due against the existing demand. The Court, in its order, has directed that the Department has to follow the prescribed procedure and give the tax payer an opportunity to file a reply which has to be considered by the tax officer before the same is adjusted. Non- grant of credit for TDS The Court observed that many tax payers' claim for TDS credit is rejected in two cases. One where the deductors uploaded wrong particulars of the TDS which has been deducted and paid. Two, where there is a mismatch between the details uploaded by the deductor and the details furnished by the tax payer in his return of income. The Court has directed that the Department must take suitable remedial steps to avoid unnecessary burden or harassment caused to tax payers. The claim for TDS should not be rejected on the ground that the amounts do not tally with the Form 26AS. It should fix a time limit within which the unmatched challans shall be verified and corrected. The taxpayers as deductees, should not be made to suffer because of faults made by the deductors, as it causes unwarranted harassment and inconvenience to tax payers. Once the payment for the TDS is received by the Department, credit should be given to the tax payer. The tax officer should also take reasonable steps to ensure that the deductor corrects any wrong data uploaded of any tax payer. Non- Communication of adjusted intimations issued u/ s 143( 1) Under the provisions of the Act, once a return of income has been filed, the tax officer has to issue an order u/ s 143( 1) of the Act confirming the details filed in the return or to raise any objections / defects in the same. The non- communication of intimations issued u/ s 143( 1) of the Act, where adjustments on account of rejection of TDS or tax paid has been made, is a matter of grave concern. The Court has directed that if a TDS or tax credit claim has been rejected on a technicality, but there is no communication to the tax payer of the order u/ s 143( 1); the tax officer cannot enforce the demand created. The Court, in the concluding paragraphs of the order, has noted that any non- compliance of the directions as issued in the Order; the tax payers will be required to approach the appropriate judicial authority for the appropriate order or direction. This directive judgement is very useful for tax payers who have been facing the above issues over the past couple of years, but have no idea of the manner in which these grievances can be resolved.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
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| How to Avoid errors while filing IT returns Posted: 15 May 2013 09:55 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Does the IT department correct information on you? Verify your status before filling your returns.
You foresee the filing returns deadline, get your act together and begin e-filing your returns, but are awakened to a little shock - an error in processing. Don't question your Man Friday or doubt your own numbers, the fault may lie in your own information that lies with the Income-Tax Department. You may not be able to file your returns for this year if your Permanent Account Number (PAN) or Date of Birth (DoB) stored in the IT Department database is incorrect.
The IT Department recently updated the website and servers of incometaxindiaefiling.gov.in. Some serious efforts were made by the department to complete the new settings this year. Now, there are more checks which help an assessee to file his/her return in a convenient way.
What's new? The XML file which gets uploaded on the department's server while filing a return is first verified against its PAN. If there is a mismatch in the PAN and DoB as per the database available to Income-tax Department, an error will reflect in return. The check is also there for PAN which in case any filer enters in-correctly, the department server gives 'PAN does not exist' error.
What should you do?
If a filer gets an error about the DoB mismatch, he should recheck if he has correctly provided the information or not. In case the filer is using an Excel template from the Income-tax Department, he has to correct the DoB in the respective cell and re-generate the XML to upload the same on the DIT server again. If the filer is using any vendor's E-filing software or portal, he has to follow the protocol as per the software to get his details corrected.
Error despite all details correct?
If the filer has correctly provided his PAN and DoB details and still there is an error of mismatch, there is a probability that incorrect record is being maintained in the database of Income-tax Department for that filer. The filer is required to check with the Department as to what exact DoB exists in the database. The filer can change the DoB in his return filing as per the database and file. However, it is recommended that one should get one's records correctly updated in the Income-tax Department before filing.
To get the details corrected, the filer has to apply for a PAN Correction (Form - 49B) with National Securities Depository Limited (NSDL). The NSDL will send the updated information to the Income-tax Department and then the records should get rectified for the filer. PAN Correction can be done from any PAN Center available nearby or from online portals.
How to verify PAN and DoB before filing return?
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
| Charity Can fetch you Tax Benefit Posted: 15 May 2013 05:33 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Charity Can fetch you Tax Beneficial
Furnish donation receipts with Form 16 to claim deduction
Next, you need to calculate the net qualifying amount.
So, net qualifying amount – that is, A+B+C – will be deducted from your gross total income and the balance will be taxed. You can look up the list of charities that entitle you to benefits under Section 80G. For instance, donations made to Prime Minister's National Relief Fund or National Defence fund will be eligible for 100% deduction, without any qualifying limit. In case of donations to Prime Minister's Drought relief fund, National Children's Fund, etc, the relief is restricted to 50%. Then, there is a third category that covers charities approved by the Income Tax Department – you can ascertain their eligibility on the basis of the certificate they furnish. A certificate issued by the respective trust/institution is required to substantiate the claim under Section 80G or the certificate issued by the Drawing and Disbursing Officer (DDO) or the employer. The list would include charities like Child Relief and You (CRY), In Defense of Animals and so on. If you are donating funds to their causes, you can claim a deduction of 50% of the amount. However, the sum total of donations in this category cannot exceed 10% of adjusted gross total income. Make sure you preserve the receipts of donations, which usually carry a stamp specifying that the charity is eligible for 80G deductions, issued by the NGOs. "While you do not need to attach any documentary proofs along with your tax return, you need to have the certificate and PAN of the charity while filing the return.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
|
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