Chartered accountants across the country have requested the Prime Minister’s office and the Finance Ministry to rein in tax officials who have been directed to take “all possible actions” to recover tax amid a shortfall in revenue collection.
On March 26, the Central Board of Direct Taxes (CBDT), the apex body, issued instructions to all principal chief income tax commissioners (CITs) across India to take “all possible action” immediately to boost the collection of direct taxes, including recovery of arrears.
This kind of instruction causes a great deal of concern in the minds of taxpayers as it is bound to create unrealistic pressure on tax officers, particularly days before the end of the financial year, said a press statement jointly issued by the Bombay Chartered Accountants’ Society, Chartered Accountants Association Ahmedabad, Chartered Accountants Association Surat, Karnataka State Chartered Accountants’ Association and Lucknow Chartered Accountants’ Society.
“Such a situation would be in sharp contrast to the stated motto of the government of ushering in a tax-friendly regime,” said the communique which was signed by Sunil Gabhawalla (Mumbai), Chintan M Doshi (Ahmedabad), Rashesh Shah (Surat), Raghavendra Shetty (Karnataka) and R.L.Bajpai (Lucknow).
According to the release there are thousands of cases across India where demands may have been raised due to mismatch in the credit of TDS as per form 26AS and as per income tax portal for various valid reasons; the tax demand could also be because of pending disposable of rectification application for giving effect to orders to Commissioner of Income Tax (Appeals) and Income Tax Appellate Tribunal (TAT). Many a time the tax demand is seen pending due to non-intimation of manual rectification carried out by assessing officer.