A Flaw in TDS Software

Taxpayers might face penalties for interest u/s 234A, 234B and 234C while submitting ITR for FY18-19. They’re Interest for default in filing ITR, default in payment of advance tax and interest for deferred payment of advance tax respectively. It’s charged interest 1% per month for 234A and 1% tax due in quarterly for 234B and 234C. The penalties are OK but the question arises how FIs failed to cut TDS when there is PAN. Isn’t that inappropriate transaction?

TDS must be calculated correctly as salary paid through a bank. But there’s a miss factor. All incomes like salary, interest and other income from professional, long term, house rent are included in 26 AS but the software is unable to deduct TDS correctly as all incomes are not added as single entity. It calculates TDS at 5% for income up to 5 lakh. If goes beyond, it falls under tax bracket 20%, 30% but TDS on interest on FDs are always 10%. Assesses are to pay advance tax for interest earned quarterly. Senior citizens invest in SCSS and VPBY for regular income. That forced them to pay advance/self assessment tax.

E-Filing Help desk at ITO could not suffice. However, CAs is doing help. Even E-Filing isn’t done with ease. Without Aadhaar, e-Verify is troublesome. Besides, there are emails from a largely factitious websites that taxpayers get panicked. Tax Saving Investment is to be subtracted from gross income automatically. There’re concerns for TDS without PAN resulting higher deduction. Earning quarterly Interests from savings account aren’t considered for TDS. Which can’t be shown zero either at ITR? All is not well for assesses while paying tax.

Kamal Baruah,

Guwahati.

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