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Previously few weeks, a number of people have been slapped with notices from the Revenue Tax (I-T) division asking them to cough up the quantities inside per week.
Whereas the division’s information present the calls for as ‘unpaid’, tax payers who’ve obtained the notices are assured they haven’t any such excellent with the tax workplace.
Among the notices pertain to evaluation years 2003-04 and 2004-05. Many are clueless the best way to go about dealing with the notices because the outdated fee challans and rectification orders, which may function proof of tax fee, have been misplaced. The errors, sources consider, are most likely a consequence of the division migrating to a brand new system.
“That is troublesome for a lot of. These outdated calls for are additional sought to be adjusted in opposition to refund receivable for the present 12 months! Most often these calls for are both paid or needed rectifications have already been handed a number of years again. However the brand new system doesn’t recognise the up to date place. Thus the taxpayers need to submit paperwork in help of deletion or fee of such calls for. In a number of circumstances such outdated information are both not simply obtainable or simply plain unavailable,” mentioned Rutvik Sanghvi, Accomplice at Rashmin Sanghvi & Associates, a CA agency.
Some taxpayers are selecting to pay up with out difficult the division, if the quantity in query is small. For others it might imply going by way of the rigmarole of an enchantment.Whereas the tax workplace can return as much as ten years in reopening as evaluation underneath the grounds that some earnings has escaped untaxed, there isn’t any time restrict in pursuing outdated calls for with taxpayers. “It might be useful if the division can recognise the hardships confronted by taxpayers for no fault of theirs, and replace and proper the inner system. Calls for and changes ought to ideally be put in abeyance until the brand new system is totally up to date,” mentioned Sanghvi.
Among the tax skilled lobbies are planning to formally take up the matter with the I-T division. In response to a CBDT spokesperson, “..there perhaps circumstances during which refunds are as a result of taxpayer, however earlier calls for might also be excellent. Part 245(1) of Revenue-tax Act, 1961, mandates offering a possibility to the taxpayer to make a illustration earlier than adjusting the refund in opposition to an present demand. The taxpayer is required to agree, disagree or make clear the standing of the demand. Accordingly, taxpayers with present demand(s) within the earlier years are being intimated of the identical. “
Curiously, among the assesses who had requested for the small print of such ‘calls for’ have been informed by the division which might be no information of those outdated calls for and the way similar had risen, mentioned Rajesh P Shah
Accomplice at Jayantilal Thakkar and Firm, one other CA agency. “The division merely has the quantities and evaluation years for which they relate to. Assessees may have a troublesome time to get the rectification executed and nullify the demand,” mentioned Shah. (The current growth follows an analogous state of affairs in late August when the I-T division had accepted that there was “an faulty adjustment communication. This time it pertains to ‘pending’ calls for which have been cleared.)
In Whatsapp teams of tax professionals, the matter has cropped up in latest conversations. Narrating his expertise, a member of 1 such group mentioned: “..I had the possibility to satisfy an (I-T) official for an incorrect demand. The person had round 500 such circumstances and mentioned the state of affairs was related in every single place. Additional, the calls for should not routinely deleted even when the officer states that fee/rectification is finished. The brand new system requires them to boost a ticket after which add a handbook order for deletion of such calls for. Even after doing this the calls for haven’t gone from the system.”
Most really feel both tax officers had not uploaded the system when the tax due have been cleared or the system is defective. Both approach, it’s the taxpayer who has to take care of it.
