Taxpayers raise refund, TDS issues with Income-Tax department

Tax payers and tax practitioners raised issues related to tax refunds and Tax Deduction at Source (TDS) with the Income-Tax Department during an Open House organised by Gujarat Chamber of Commerce and Industry (GCCI) in Ahmedabad on Wednesday.

Ajay Das Mehrotra, Principal Chief Commissioner of Income Tax (PCCIT) said that a week-long statewide drive will be conducted in the first week of March to resolve the pending issues related to Rectifications, Appeal Effects and Consequential Refunds.

"This will be a win-win situation. Tax payers will get their refunds and the department will be able to dispose many of its pending issues," said Mukesh Patel, an Ahmedabad-based expert, while talking about direct taxes. Patel is also a member of a Task Force constituted to draft a new Income Tax Law.

Tax practitioners, while talking about the TDS, complained that tax payers are caught between the department, which generates a tax demand and the Central Processing Centre (CPC), which disburses the refund. Tax payers will be able to approach the Single Window Clearance Cell by filing an application.

The department said it would be sensitive to cases dealing with difficulties in granting credit for seized and adjusted cash, return of jewellery and value arising in search-related cases and decentralisation of assessment. It will also come out with a Standard Operating Procedure (SOP) for the department to clear claims of assets seized.