Sunday, April 14, 2013

TDS Woes computerisation X CPC CBDT on..

20th June

@Nem Singh
Reciprocating his sentiments, one is provoked to hasten and add an open Appeal, in the larger public interests: 

As is being canvassed and reiterated in concerned quarters , the CBDT will , living up to the sincere expectations, do well to immediately act on, besides others, the following two matters, of common concern, on a top priority basis:
1. As is common knowledge, in the wake of, and following, the Delhi HC’s writ of Mandamus, there has been an unprecedented heavy rush and workload in the Department, particularly in core centers e.g. cities like Bangalore. That is mostly because of enormously huge number of assessees’ applications made but pending for rectification. Many, as gathered, are against patently infructuous and frivolous demands, mindlessly raised by AOs / CPC by reason of no credit or proper credit having been allowed for taxes paid by way of TDS. According to information, the fate of many of the applications so made has not been made known to the assessees, hence worried not having been sent any communication, whatsoever . Further, no confirmation of cancellation of the demand is heard to have been sent; not even in known cases where, based on the explanations and data provided by assessees, such demands deseved to have been cancelled forthwith.

2. In the recently introduced section 194 IA, supposed to be in effect from April 1, 2013, as pointed out and urged in certain quarters , including the affected Realty Sector, there are lacunae requiring the necessary correctives to be plugged in, for the Department to expect the requirement to be strictly complied with. Among them, one grave doubt is on the very basic question, – as to whether the provision, in its present terms / wording, has application to cases of transfers of “units” of a building comprising “flats” or “apartments”. Albeit, one's guess is, that is the type of transaction intended to be mainly targetted. In one’s impartial view, the cogent reasons given and the sound logic behind, for urging prompt action / clarifications, are not-so-difficult as not to be readily noted; and the validity thereof appreciated.

It is hoped on hopes, the newly appointed madam-chief of the top Executive Authority (CBDT) would , as indicated, bring in a new-look to the functioning of the Department; and primarily, a welcome change for the long desired / clamoured for but pending tax-payers-friendly environment. Reference, of course, is to the mentioned, – “the only about 3.5 crore assesses, a mere 2.9% of the national population”).

'Discussing salary still an office taboo'
Times of India ‎- 2 days ago
When it comes to discussing salaries, most employees still follow the 'don't ask, don't tell' policy, according to a new global study.

<> Anyway related ?

An Update (@SG)

April 17, 2013 at 8:00 AM

Related (from IRS) ?

&     et al

  1. Useful Miscellania » CPC Directive Reg Processing of Returns For ...
    Feb 2, 2013 – CPC Directive Reg Processing of Returns For AY 2012-13 With Refund Claims ... Transfer Pricing: CBDT Circular On Research & Development ...
  2. Useful Miscellania » CBDT Scheme For Processing Of TDS ...
    Jan 18, 2013 – CBDT Scheme For Processing Of TDS & Adjustment Of Refunds ... An appeal can also be filed against the actions of the CPC. .... CBDT Circular On Procedure For Refund Of Excess TDS Deducted/ Paid · Adjustment ... Transfer Of Hon'ble Member Of ITAT · CPC Directive Reg Processing of Returns For AY ...
  3. <><> The subject Notification has specific reference to section 200A; hence has to be necessarily read in the light of the CBDT Circular clarifying the manner in which any excess or short TDS has to be dealt with. Which again depends on whether the withholding (TDS) was made before or after the date of 1 st April 2010 being the date on which the said section came into force.

    However, as commented therein (reproduced below), there is more than one facet that has not been specifically gone into and covered:
    < The subject Circular has been issued by the Department, rightly so, having regard to the newly introduced section 200A. So far so good; in that, any prima facie short or excess deduction, at least in so far as it is clearly reflected in the Statement of TDS filed is payable by or refundable to the deductor, not by or to the deductee . But it has seemingly ignored / over sighted, besides some such related aspects, one very important aspect crucial from the point of view of the deductee.

    To briefly explain: It does not adequately underline that, it is incumbent upon the deductor to promptly inform the deductee , and on a timely basis, of the fact of such short or excess deduction; also to take care to, in turn recover or repay to the deductee the short or excess TDS.
    As regards the latter mentioned instance, what needs to be noted is that, in the normal course, the TDS actually withheld / made, regardless of it having been later paid to the government or not, would have straightaway gone as a debit to the deductee's account; in any event, if it be a 'running' account. If so, what follows is that, having the right to claim refund of the Xs TDS, which is only on/ to his account, the obligation/responsibility  to reverse the debit earlier made to the deductee's account by passing a correspondingly required credit entry lies with the deductor; and only him.>

    Hence, to be urged, it is unto the Revenue to adequately ensure by mandating that the deductor, - who after all is acting as an agent of the Revenue, -should do so. It is not seen to have been done thus far; not even occurred to the Revenue or the concerned others. Hence, calls for an immediate action by the Revenue; that should save the deductee from the otherwise piquant idiomatic situation of,-  falling between two stools.

  4. Adjustment Of Refunds Against Arrears: CBDT Circular -
    Jun 21, 2012 – Adjustment Of Refunds Against Arrears: CBDT Circular ... Demand · FAQ On How To Ensure That E-Filed Returns Get Processed At CPC ...
As per the CPC Scheme 2013 refunds can be adjusted only after prior intimation to the assessee

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