Annexure-less returns worry taxpayers
For nearly a year after the system was introduced in assessment year 2006-07, the tax department is still battling with tax refunds of nearly Rs 14,000 cr. Cut tax bill
By Swati Bharadwaj Chand, TNN |
AHMEDABAD: Is the new system of filing mandatory annexure-less tax returns introduced by the income tax department in April the beginning of yet another headache for the common taxpayer who is already burdened with the new complex return forms?
According to tax experts, the new system comes at a time when the I-T department is already struggling to tame the Frankenstein that it had unleashed on the corporate tax-payers in the form of annexure-less e-returns.
For nearly a year after the system was introduced in assessment year 2006-07, the tax department is still battling with tax refunds of nearly Rs 14,000 crore that were filed online by nearly 3.2 lakh taxpayers nationally.
Sources said, a clear indicator was the notices that the tax department has now started issuing to corporates to physically present copies of TDS (tax deducted at source) annexures to verify their refund claims.
Even as the department is grappling with this problem, in assessment year 2007-08 it has made it mandatory for partnership firms with over Rs 40 lakh turnover and professional firms with over Rs 10 lakh turnover to file annexureless e-returns and for individual and salaried taxpayers to file annexure-less paper returns.
This has now had brought the total number of e-returns filed this year to nearly 30 lakh with another nearly 2 crore of paper, annexure less returns filed by common taxpayers.
If a year later the tax department is still struggling to verify just 3.2 lakh corporate claims, what will be the magnitude of the problem that the tax department will face this year with nearly 2.3 crore annexureless tax returns and consequential refunds? Queries tax expert Mukesh Patel.
Patel feels that making annexureless returns mandatory was actually creating more problems for tax payers than reducing them. Imagine the kind of problems that the common tax payer will face this year in getting refunds who is already burdened with the new complex tax returns.
Tax authorities admitted they were facing teething problems with 2006-07 s e-return refunds. Gujarats chief commissioner income tax J D Sahay confessed to facing problems but refused to divulge details. There are certain issues pertaining to annexureless returns, which we have pointed out to the CeBDT, she said.
Sources claimed that while tax refunds of below Rs 25,000 e-filed by corporates last year had been processed, it was only in high value returns that they were seeking physical verification of annexures.
BURIED UNDER?
In 2006-07 , 3.2 lakh e-returns filed by companies with refund claims worth Rs 14,000 crore, which a year later the taxman is still struggling to process Assessment Year 2007-08: Nearly 30 lakh e-returns filed by corporates and partnership firms Nearly 2 crore annexure-less paper returns filed by individuals.
According to tax experts, the new system comes at a time when the I-T department is already struggling to tame the Frankenstein that it had unleashed on the corporate tax-payers in the form of annexure-less e-returns.
For nearly a year after the system was introduced in assessment year 2006-07, the tax department is still battling with tax refunds of nearly Rs 14,000 crore that were filed online by nearly 3.2 lakh taxpayers nationally.
Sources said, a clear indicator was the notices that the tax department has now started issuing to corporates to physically present copies of TDS (tax deducted at source) annexures to verify their refund claims.
Even as the department is grappling with this problem, in assessment year 2007-08 it has made it mandatory for partnership firms with over Rs 40 lakh turnover and professional firms with over Rs 10 lakh turnover to file annexureless e-returns and for individual and salaried taxpayers to file annexure-less paper returns.
This has now had brought the total number of e-returns filed this year to nearly 30 lakh with another nearly 2 crore of paper, annexure less returns filed by common taxpayers.
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If a year later the tax department is still struggling to verify just 3.2 lakh corporate claims, what will be the magnitude of the problem that the tax department will face this year with nearly 2.3 crore annexureless tax returns and consequential refunds? Queries tax expert Mukesh Patel.
Patel feels that making annexureless returns mandatory was actually creating more problems for tax payers than reducing them. Imagine the kind of problems that the common tax payer will face this year in getting refunds who is already burdened with the new complex tax returns.
Tax authorities admitted they were facing teething problems with 2006-07 s e-return refunds. Gujarats chief commissioner income tax J D Sahay confessed to facing problems but refused to divulge details. There are certain issues pertaining to annexureless returns, which we have pointed out to the CeBDT, she said.
Sources claimed that while tax refunds of below Rs 25,000 e-filed by corporates last year had been processed, it was only in high value returns that they were seeking physical verification of annexures.
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BURIED UNDER?
In 2006-07 , 3.2 lakh e-returns filed by companies with refund claims worth Rs 14,000 crore, which a year later the taxman is still struggling to process Assessment Year 2007-08: Nearly 30 lakh e-returns filed by corporates and partnership firms Nearly 2 crore annexure-less paper returns filed by individuals.
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