Interim Budget Expectations 2019-20:
There are already news items regarding the said Interim Budget, Vote on Account, all The Budget will have all populist measures as the this being the Election year. However, I think the Interim budget may not be seen as Budget in isolation of previous budgets by the Govt. and the Full Budget be the New
Govt., Otherwise, the impact of the same on the economy will have to be ascertained separately.
During the last one year, particularly after the implementation of the GST, there were changes in the filing, Due dates, Formats, some additions and withdrawals some postponement in the original GST day in and day out. Still there are problems on the procedure part of the GST. The changes are so fast, that what was the original GST Act, and Rules are gone out of the minds of the stakeholders.
I think the rates of the GST has some effect but not much but the procedures, Rules has wider confusions in the minds of both the Tax authority as well as dealers.
In view of above, I expect the Interim Budget will give some relief as follows:
GST:
There was a provision in the old Service Tax Act under Rule 6, that, professional assessees like Chartered Accountants whose turn over not exceed Rs.50/- lacs can pay service tax on receipt basis i.e. as and when received. However, there is no such provision in the GST and GST has to be paid on accrual basis irrespective of receipt.
All earlier Acts which are merged in the creation of GST has the provision for revision of the returns. However, there is no provision for revision in the GST. A revision does not necessary means, evasion, but can also help in better compliance.
Income Tax Act:
There was an announcement that, The Income Tax Dep't. Will not file an appeal in all cases where the disputed amount is less than or equal to Rs.20/- lacs. And this measure be considered as helpful for the middle class. I think that middle class is not those who have appeal for Rs.20/- lacs but those whose total turnover, Income from salary, business, the profession is up to Rs.20/- lacs and Taxable income below Rs.10/- lacs. & this is the class who has face every hardship from the authorities.
The Risk Management Assessment, Intimation U/s143(1)(i) (a) should be sent in minimum cases, where there will be a major impact on the taxes & not otherwise, The assesses has to visit the site at least every quarterly to see the box and compliance pending if any.
Accepting the Salary Returns as per the Form No.16 issued by the employer, instead of comparing the same and raising quarries comparing them with TDS Return of 24Q of the employer, if the amount of TDS deducted matches with the 26AS of the employee. In one case, the employer has forgotten to deduct the children Education allowance for one child out of Two. The assesses while filing the respective return has claim Rs.1200/-p.a. Children Education Allowance, however the same is refused as does not match with the Salary details submitted along with 26Q4 TDS Returns. Now, the employee has to get the 26Q4 revised for Rs1200/- or forget the deduction. It is difficult to ask for a revision if the employer have 300 employees. A suitable mechanism has to be found for such corrections in this Budget.
Other Expectations are:
1. GST on receipt basis to the eligible persons having total turnover up to Rs.50/- lacs.
2. Revision of Returns in specific time period should be allowed.
3. No notices on presumption. All returns compliances for the assesses having turnover or salary up to Rs.20/- lacs and taxable income up to Rs.10/- lacs should be accepted if complied on time.
4. The exemptions like Children Education Allowance. Rs.100/- p.m. Any Allowance to meet hostel Expenses Rs.300/- p.m. per child up to maximum, two children's should either be increased to Rs.1000/- and Rs.3000/- p.m.per Child or should be abolished.
5, The differences, in Salary Return and 24Q, Service Tax and Income Tax, GST & Other Taxes up to Rs.1/- lacs, The reconciliation should be asked in exceptional very few cases, the rest should have been accepted.
6. All the nationalized banks should accept the payment to the Govt of any taxes, revenues, PPF etc. The deficiencies if any should be corrected later on but no refusal should be allowed. In case they refuse, it should be in writing on the respective form /challan.
7. No local taxes, or registrations under State Law TDS provisions for the MSME for first two years, only registration on MSME sight is required. The banks should be asked to give priorities to MSME newly registered.
8. The Refunds due under difference Acts, should be promptly given, by self or when ratification is filed.
9. No Aadhaar connectivity for Senior Citizens for PAN, Their Income Slab be raised to Rs. 5/- lacs and Interest Income to the extents of RS.2.50/- lacs should be exempt from TDS.
10. As mentioned in the constitution and under The Income Tax Act, The Tax Relief if any due to the assesses, his ignorance on the said relief, The concerned officer, should correct the same, inform the assesses and give such relief, in the assessment and or in any proceeding or otherwise. And in case, the same is not given, at least should be granted when the first point out by the assesses at any stage of assessment, rectification, revision and/ or appeal. I request to obtain such a declaration from the department.
11. All penalties under any Act including under The Income Tax Act for late filing of the Returns, Revised Returns etc. should be levied only in cases where the Tax payable is above Rs.5/- lacs and/or Gross Total Income above Rs.25/- lacs and /or The Annual T.O. above Rs.50/- lacs from goods/services.
12. All the assesses including senior citizens, who have suffered from a critical illness like Heart attack, Cancer, TB, Paralysis, Dialysis, etc. should be given relief not to open their cases u/s 148, if the amount involve not exceeding Rs.5/- lacs. And in other cases, they should be at least ask only replies related to the points of
Scrutiny. Their assessment should be completed in one hearing and/or submission. They should be allowed to file, revised, ratify their return as and when they like the number of years and/or before completion of the assessment.
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