At least they should implement from P.Y.2009-10.Even the E-filing at the govt website is not activated.PAN Registartion & E-filing after that is taking too much of time.

Regards.

what u r saying is absolutely correct. Also the CBDT is trying to bring in some changes which are perhaps not permitted be tenets of law. Burden of proof/ correctness  for availing credit of TDS is being shifted on the Payee / Assessee by assuming powers under rules, however the section governing assessment .ie. sec 143(1) does not permit the Dept to go beyond the data available in the return. The AO has to give credit to the Assessee u/s 143(1) based on what has been furnished to him in the return. The recent circulars on TDS issued by the CBDT are asking the taxpayer to go beyond what is normally expected of him under the law - he is being put to work for correction of mistakes done by the Deductor, many a times he might be in such a position that he may not be able to get what he wants.

This will only result in inordinate delays in processing of returns u/s 143 & delays in getting refunds.

what u r saying is absolutely correct. Also the CBDT is trying to bring in some changes which are perhaps not permitted be tenets of law. Burden of proof/ correctness  for availing credit of TDS is being shifted on the Payee / Assessee by assuming powers under rules, however the section governing assessment .ie. sec 143(1) does not permit the Dept to go beyond the data available in the return. The AO has to give credit to the Assessee u/s 143(1) based on what has been furnished to him in the return. The recent circulars on TDS issued by the CBDT are asking the taxpayer to go beyond what is normally expected of him under the law - he is being put to work for correction of mistakes done by the Deductor, many a times he might be in such a position that he may not be able to get what he wants.

This will only result in inordinate delays in processing of returns u/s 143 & delays in getting refunds.

This is not the intention of law and in past many courts have also given decisions that evenif the deductor has not paid the amount of TDS to the credit of Central Government, the payee can not be asked to pay the amount of income tax again. The circular has gone much beyond the powers conferred by ACT to CBDT.

-In the Acknowledgement copies given to bank, there will not be any seal of IT department.

-In few cases, some may resort to e filing of returns and delibrately avoid filing of acknowledgements to IT office so that the returns will be treated as not having been filed.

-Filing each and every acknowledgement to Bangalore IT office is costly affair.

-How the IT office Bangalore will acknowledge the receipt of the ITR V?

In view of the above, the old method can be brought back.

Thanks

I suggest that there should be a facility of scanned ITR V to be uploaded with manual signatures of assessee like the documents are uploaded on MCA site. This will reduce the paper and postage cost and will lead to green environment.

As per the data available at the Income Tax site a total of 44.44 lacs returns were filed online last year, majority of them without digital signatures assuming that the digital signatures must have been affixed to returns of only a few companies and directors, as the clients still prefer the stamp of the Income Tax Department on the IT return. The cost involved in sending the same by post would be around Rs. 222 crores of general public, whch could be saved. Also the manpower required to handle so many forms would be enormous.

Moreover, if around 15-20 lacs returns are filed in the last 10 days of July, Sep or Mar, and the same are despatched when the 30 days are coming to an end, is the Department equipped enough to handle so many returns so as to reply them within a month. If we do not receive the reply within one month that means the return was never filed. Who will be responsible for this.

"Given the complexities, it would be impossible for even union finance minister to file his own tax returns for the assessment year 2009-10, thanks to the new CBDT guidelines for filing of returns," he said.

The National Securities Depository Limited (NSDL) has been assigned to prepare UTN for TDS transaction record. "If one visits the website of NSDL, nothing in this regard is available," he said, adding, "In its zeal to implement something innovative, the CBDT seems to have lost sight of several practical implications. NSDL will be required to generate UTNs for a very large number of TDS transactions, which looks impossible before July 31, 2009. The issue should be raised through Right to Information Act (RTI) as the matter is related to crores of tax payers
across the nation".

In the pursuit of matching the TDS payment and its claim by the payee, in addition to challan numbers and mandatory payment of taxes through electronic medium, a new addition in the form `Unique Transaction Number' (UTN) is required to be attached to each tax payment.

To complicate things further, inserting UTN for matching TDS payment and tax credit has been made applicable even for financial years 2007-08 and 2008-09. The changes are to apply on retrospective basis. It is stated that the UTN would be allotted based on the quarterly returns filed by the deductors. The payees hence have to wait and cannot furnish their returns unless the UTNs are given to them by the payers well in time or the facility of viewing is made available by the NSDL.

The return form contains a column meant for furnishing UTNs and if such column is left blank, the tax department might claim the return as defective and call for rectifying the defect at a later date. This puts the taxpayers in a fix as they cannot furnish the return pending information as regards UTNs for each of the tax deduction or collection at source.
Prospective application

It would be in the interest of the Revenue and taxpayers at large if the CBDT gives a circular dispensing with the requirement of furnishing UTNs in the return forms so that the taxpayers can complete filing the return of income before the due date.

DIGITAL DILEMMA WANING.

L.N. Revathy

Coimbatore, June 3 The Electronic Filing (eFiling) of income-tax returns by individuals is catching on, albeit slowly.

A little over 27 lakh income-tax assessees filed their tax returns via the electronic route last year (2008-09).

That is two and a half times more than the number making use of that facility the year before. Even in relative terms that is twice (7.3%) the figure of the previous year.

Tax authorities expect the eFiling share to increase to 45 lakh returns or 10 per cent of the tax returns filed in assessment year 2009-10 and further to 15 per cent (82.50 lakh returns) in 2010-11.

"The trend towards eFiling of tax returns is definitely catching up. The last-mile link was missing until last year. Though a good number of assessees took to electronic filing of returns, the filing part had to be in the physical mode. The digital signature has bridged this gap. So, one can now use the digital signature for electronically furnishing the return'," Mr. Ravi Jagannathan, Managing Director and Chief Executive Officer, Consumer Services Division, 3i Infotech told Business Line.

The company has registered over 20,000-plus digital signatures since expanding its services into the e-tax compliant space.

The concept is expected to provide absolute relief, particularly to those in the IT and BPO companies on night shift, and those of postponing this work till the last date.

According to Mr Jagannathan, the IT Department was giving due importance to E-Return Intermediaries (ERIs) to encourage eFiling of tax returns. "3i Infotech is building an awareness campaign," he added.

A recent circular from the I-T department noted that all returns filed electronically would be processed on priority basis at the centralised processing centre of the department in Bangalore.
Procedures

To facilitate eFiling, the board has notified new forms for the AY 2009-10. These return forms are available at http://www.incometaxindia.gov.in

While eFiling is mandatory for a company and a firm liable to audit under section 44AB of the IT Act, it remains optional for other categories of tax-payers.

The e-return has to be furnished at http://incometaxindiaefiling.gov.

in.

The department has further stated: "It is advisable, though not mandatory, to use a digital signature for electronically furnishing the return."

If the return is electronically furnished under a digital signature, the tax payer would not be required to furnish the Form ITR-V with the department. Else, the assessee would be required to follow up the electronic transmission of the data by submitting Form ITR-V (as verification of the electronic filing of return).

Procedure spelt out for persons other than deductees to avail TDS credit.

Tax relief

The new CBDT rule has now settled the position that a person who is liable to pay the tax should be eligible for the TDS credit

Joint owners in shares, deposits or property could now have the right to claim

K.R. Srivats

New Delhi, March 20 Tax deducted at source (TDS) credit can now be availed by persons other than the deductees. This has been clearly articulated by the Central Board of Direct Taxes (CBDT) in a new rule on TDS credit availment.

Bringing relief and certainty to taxpayers, the CBDT has also spelt out the situations and the procedure through which the tax credit will be made available for persons other than deductees.

The credit for TDS will be allowed to persons other than the deductees only in cases where the relevant income is assessable to income tax in the hands of such other person. The new CBDT rule has now settled the position that a person who is liable to pay the tax should be eligible for the TDS credit, say tax experts.

To illustrate this point, consider a situation of winnings from a raffle going to a minor. The tax is deducted before the payment is made to the minor. Under the clubbing provisions of income tax, the income of the minor gets clubbed with those of the parent and gets taxed at the latter's hands.

As the TDS certificate is in the name of the minor (deductee being the minor), tax authorities at the ground level often deny TDS credit to the parent even though the incomes are clubbed and assessed in the hands of the parent. Now, the CBDT has made it clear that tax credit has to be granted to the parent (the person in whose hands the income is assessable).

Similarly, in a situation where the deductees are joint owners of shares, property and deposits, the CBDT has now said that the TDS credit would be available to the respective joint owners in proportion of their ownership of the asset. Hitherto, no mechanism was available by which all the joint owners in shares, deposits or property could have the right to claim TDS credit.

"The latest CBDT rule on credit for TDS will bring clarity at the ground level. They have gone by the principle that the person who pays the tax should get the tax credit," Mr Jayesh Thakur, Associate Director, PricewaterhouseCoopers told Business Line.

Till date, tax officers were taking different views on the eligibility for tax credit in situations where the income is assessable to tax in the hands of persons other than the deductee. Hitherto, assessees were often required to go up to the High Courts to get benefit of the TDS credit, point out tax experts.
Trusts, partnership firms

The CBDT has also brought clarity and certainty to the eligibility for availment of TDS credit in respect of trusts, partnership firms and Association of Persons (AOP).

In situations where the deductee is a Trust and the income is assessable in the hands of trustees, the TDS credit should be granted to the trustee. Similarly, where the deductee is partner or karta of a Hindu Undivided Family (HUF) and the income is assessable as the income of firms or the HUF, the TDS credit would have to go to the partnership firm/HUF.

Where the deductee is the Association of Persons (AOP) and the income is assessable in the hands of the members, the CBDT has made it clear that the TDS credit should go to the members of AOP.

The procedure: For persons other than the deductee to get the TDS credit benefit, the deductees are required to file a declaration with the deductor. The declaration should have details of the other person (i.e. the person to whom tax credit is to be given) like name, PAN, payment or credit in relation to which tax credit is to be given and the reason for giving credit to such person.

The deductor would report tax deduction in the name of such other person to the tax authority. The TDS certificate could also be issued in the name of the person other than the deductee.

In Budget 2008-09, the Government decided that the system of allowing credit to the assessee for TDS/Tax collected at source (TCS) needs a certain degree of flexibility considering the ongoing technological and business process changes.

Instead of providing rigorous conditions regarding the method of giving credit for TDS in the Income Tax Act itself, the Government decided to do this through the rules. That promise has now been implemented by CBDT by bringing the necessary rule for this purpose.