TAX-PAYER
FRIENDLY MEASURES
Filling
of TCS returns on magnetic media
Under the
existing provisions of sub-section (5A) of section 206C, the persons collecting
tax in accordance with the provisions of selection 206C are required to
file returns of tax collection at source.
The returns
of tax collection contain voluminous data, and preparing these returns
and then processing the data contained therein for checking its correctness
requires substantial manual effort. The Bill proposes to provide the filling
of these returns on magnetic media such as floppies, diskettes etc. as
may be specified by the Board. It is also proposed that the information
in such returns shall be admitted in evidence in any proceedings under
the Act.
The proposed
amendments will take effect from 1st June, 1999.[Clause 80]
Simplification
of procedure of processing of return under sub-section (1) 143 and doing
away of prima-facie adjustment
Under the
existing provisions of Income-tax Act all the returns filed are processed
under sub-section (1) for payment of tax and issue of refund. Certain
powers are available with the Assessing Officer to rectify arithmetical
mistakes and make prima-facie adjustments regarding allowable and disallowable
claims and deduction. These are known as prima-facie adjustments. In addition
to tax on income as a result of prima-facie adjustment, 20% of the tax
is also levied as additional tax for making incorrect claims.
It is seen
that the present system of prima-facie adjustment has become some sort
of assessment in itself where every return is examined minutely and such
adjustments are also open to appellate remedy. Most of the time of the
Assessing Officer is utilised in processing the returns in the above manner
leaving very little time for other important works. The ever-increasing
number of returns also will make such processing of returns more time
consuming. In view of the above it is proposed that the present provisions
contained in sections 143 (1) or 143 (1A) or 143 (1B) are to be modified
to do away with prima-facie adjustments, additional tax and issue of intimations
in all cases. Filling the return by itself would complete the process
of assessment limiting its scope to raise demand and issue refund on the
basis of the return filed. Except for issuing intimations where any sum
is payable by the assessee or refund is due to him, the acknowledgement
shall be deemed to be an intimation. It is also proposed to amend section
154 of the Income-tax Act to provide for rectification of intimation or
deemed intimation referred to in the proposed sub-section (1) of section
143. Similar amendments have also been proposed in the Wealth-tax Act.
The proposed
amendment shall take effect from 1st day of June, 1999.[Clauses 64, 65
92 & 97]
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