The Karnataka State Chartered Accountants Association ( KSCAA ) has made its representation before the CBDT on the incorrect processing of Income Tax Returns ( ITR ) by the CPC.
The key issues raised by the association were incorrect due dates consideration, Misclassification of Income, Errors in Updated Form 26AS, Incorrect Interest and Late Fees Calculations, TDS Credit Discrepancies..etc.
Further challenges include errors in tax regime selection and due date recognition. Taxpayers who opted for the new tax regime received demand notices under the old regime, while partners of tax-audited firms faced late filing notices despite adhering to the extended due date of November 15, 2024.
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Incorrect calculations of interest under Sections 234A and 234B and unwarranted late fees under Section 234F on revised returns have also inflated taxpayer liabilities. Additionally, TDS credit discrepancies, especially for deductions on non-income components like GST, have caused undue financial strain.
To resolve these issues, KSCAA has recommended steps including rectifying defective notices, enhancing validation protocols to prevent errors, granting full TDS credit as reflected in Form 26AS, and establishing a dedicated grievance redressal mechanism within the CPC.
The association used to make their representations everytime when the professionals and the taxpayers faced any issues from the side of the department.
They also wrote representation on the technical glitches faced by the professionals in the income tax portal.
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9 Technical Glitches in Income Tax Portal: KSCAA Submits Representation before CBDT
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