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Telefax: +91 172 2705641
Email: ccataxchd@gmail.com
Telefax: +91 172 2705641
Email: ccataxchd@gmail.com
To, Dated
:- 20/07/2019
Hon’ble Smt Nirmala Sitharaman,
Union Minister of Finance
Government of India
New Delhi
Hon’ble Smt Nirmala Sitharaman,
Union Minister of Finance
Government of India
New Delhi
Respected Madam,
Subject: Representation letter for extension of date of income
tax return(Individual) for AY 2019-20
CHANDIGARH CHARTERED ACCOUNTANTS
TAXATION ASSOCIATION (In short ‘CCATAX or the Association’) is an association
of Chartered Accountants, is a part of CHANDIGARH CHARTERED ACCOUNTANTS
ASSOCIATION registered under the TRUST ACT .CCATAX is primarily formed for the
welfare of Chartered Accountants and represents before various income tax
authorities to resolve the professional problems faced by chartered
accountants. CCATAX regularly conducts seminars, conferences, work-shops, study
circle meetings of professional interest for members and public. The
Association also conducts Endowment lectures. the main objects of CCATAX is Inspired
by the ideology to have a common platform for all those who practice in
taxation laws, irrespective of their individual affiliations and to enable them
to share the benefits of their learning, experience and knowledge, eminent
professionals from the fields of Direct Taxes
The due date of filing tax returns for AY 2019-20 is
31st July, 2019. Ideally, the tax return forms should be available
to the tax payers on 1st April so that if he/she wishes to file
his/her tax return on 1st April, he/she can file the same. ITR forms
being changed every year and its undesirable. This in turn leads to delay in making
available the government utility to tax payers. With almost all tax payers now
having to mandatorily file their return online, there is no option but to wait
till the CBDT makes available the ITR forms and the utility on the e-filing
site. We have witnessed delays in this matter on the part of the CBDT.
However, the pain that is now being faced by tax payer
is therefore we are constrained to write this letter to you.
There
are so many changes in the forms. This year, the long term capital gains (LTCG)
on transfer of listed shares and
units of equity oriented mutual funds have become taxable for the first time since
2004.There is a concept of grandfathering clause provided in the Income-tax Act,
for calculating the LTCG. This being the first year of taxation of the LTCG
(after a gap of almost 14 years), most tax payers are struggling with the
computation. There was an error in the utility and that fact was confirmed by an officer at the CPC in Bengaluru. You will be shocked to note that this bug in the utility was rectified
as late as 11th July, 2019. Last date for filing the
returns is 31st July.
To summarize the hardships that tax payers and tax professionals
are facing:
1. ISIN
required to claim capital gains exemption
Mentioning
the additional details of ISIN (International Securities Identification Number,
a 12-digit alphanumeric number that is assigned to every security) number being
asked for a security where the tax-payer books long-term capital gains,
Several tax payers had been ready with their computations and
return of income but could not file the returns because they had long term
capital gains and the government utility was giving errors in the calculations.
Now, on 11th July, when the new version of the
pre-filled utility was made available on the e-filing site, tax payers were
shocked to learn that there was a new requirement in the utility. The Schedule
112A for furnishing details in respect of long- term capital gain transactions
u/s. 112A, has been updated suddenly to provide the ISIN code/Folio No. with
respect to shares/unit sold
Further there is again updation in the form by made on 19th
July 2019. Which is as follow, by amending for either enters scripwise details
or not.
Schedule 112A and 115AD(1)(iii) of long term
capital gain are provided in the Income Tax Return software as per the
Instructions to the Notified ITR form and based on taxpayer feedback.Taxpayers
have an option to either enter the Scrip wise details of long term capital
gains in Schedule 112A and 115AD(1)(iii) so that the correct values are
populated cin the CG Schedule or enter the self-calculated aggregate value of
long term capital gains directly under respective items in schedule CG in terms
with Sec 112A or 115AD(1)(iii) without entering scripwise details. Taxpayers
may exercise either option based on their convenience
2. Delay in release of ITR form utilities and revisions in the
schemas
.
16/07/2018
Central
Board of Direct Taxes (CBDT) has said today that no changes have been made in
any of the Income-tax Return (ITR) forms including ITR-2 and ITR3 since the
notification made on 1st April 2019, i.e. on the 1st day of the Assessment Year
2019-20. There were reports in social media that the taxpayers were facing
difficulties in filing return of income in ITR-2 & ITR-3 due to large scale
changes in the ITR form on 11th July, 2019.
The
utility for e-filing ITR-2 and ITR-3 was released on 2nd May and on 10th May
2019 respectively
11/07/2019
Download Prefilled XML is available for ITR 1, 2, 3 and 4 for AY 2019-20. For other ITR's it will be available shortly.
Download Prefilled XML is available for ITR 1, 2, 3 and 4 for AY 2019-20. For other ITR's it will be available shortly.
07/06/2019
CBDT extends due date for filing of TDS statement in Form 24Q from 31st May to 30th June,2019
CBDT extends due date for filing of TDS statement in Form 24Q from 31st May to 30th June,2019
The ITR 1, 2 and 4 were
made available for the first time on 2nd May, 2019. Thus, the
whole of April is wasted and no body could file any returns in April.
ITR 3 was made available
for the first time on 10th May, 2019
ITR 5 was made available
for the first time on 28th May, 2019
ITR 7 was made available
for the first time on 4th June, 2019
ITR 6 was made available
for the first time on 8th June, 2019
3. Changes in utilities
Effective AY 2018-19, a new section 234F was inserted vide
Finance Act 2017, levying a fee for default in furnishing ITR. The fee ranges
from Rs1,000, Rs 5,000 and Rs 10,000, depending upon the income and timing of
filing return beyond the prescribed timeline. Even for delay of a day the
taxpayer has to incur a penalty of Rs 5000, if the total income exceed Rs 5
lakh, else Ts 1000.
The utility is getting updated regularly. Once the forms are
notified and final, such frequent changes, especially when it is made closer to
the due date for filing the return of income is undesirable. A large section of
tax payers avail the services of tax professionals who in turn use private
return preparation software for finalizing the returns. It takes a lot of time
and efforts to keep on updating these software to bring them in line with the
income-tax utilities. Very often, taxpayers have prepared their return using a
particular version of the utility but have not yet filed the return for some
reason or the other (for example, someone could be awaiting the self-assessment
tax challan.
4. Delays in Form 16s for salaried class
Usually, chartered accountants are done with
filing salaried class returns by June. However, this year, the changes made to
Form 16 and extension in filing TDS returns have ensured that several employees
received Form 16, as late as July 10, 2019. “We couldn’t file returns in
May-June as forms were notified late and salaried individuals didn’t receive
their Form 16. In July, when we move over to business tax payers, we are still
getting salaried individuals returns,”
5.
TDS certificates not available with the tax payers & 26AS not updated:
Most employers have not
been able to furnish TDS certificates and even the 26AS of employees is not
updated. This is delaying the process of filing the return of income.
Earlier, the due date for
filing TDS statement for Q4 of FY 2018-19 was 31st May but the
same was extended to 30th June, 2019 in case of TDS from
salaries (Form 24Q). This was done because the format was changed at a late
hour by the CBDT.
6.
Penal provisions of section 234F of the Income-Tax Act, 1961
Effective AY
2018-19, a new section 234F was inserted vide Finance Act 2017, levying a fee
for default in furnishing ITR. The fee ranges from Rs1,000, Rs 5,000 and Rs
10,000, depending upon the income and timing of filing return beyond the
prescribed timeline. Even for delay of a day the taxpayer has to incur a
penalty of Rs 5000, if the total income exceed Rs 5 lakh, else Ts 1000.
7.
The requirement of reporting of unlisted shares:
While reporting “general information”, the assessee is required
to report the details of unlisted shares which are held by him. One of the
fields in this section is for providing the PAN of the company whose shares are
held.
In common that there are
thousands of other companies which were, once upon a time, listed on stock
exchanges and which have, over the years, disappeared completely. Shareholders
have lost crores of rupees worth of investments because of such companies. They
are not even able to trace the companies. How would they be able to find out
the PAN of such companies? And if this information is not provided, the return
could be treated as defective.
With utmost request, we feel that this requirement is unfair and
completely tax payer unfriendly.
These are some of the major and important
issues which have been highlighted for your kind attention.
We request you to kindly look into these matters and to provide
a solution to tax payers and extend the date upto 30th September so
they can peacefully file their tax returns in time
We hope that you will understand and consider the complications
faced by assesses at large and extend the date upto 30th September.
We look forward to your response in the matter.
Thanking you,
Yours sincerely,
CA Manoj Kohli
(General Secretary)
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