Is something wrong with the I T Act 1961
• Total Refunds: Rs.1.01 Lakh Crore to 27.54 lakh taxpayers
• Personal income tax Refunds: Rs.30768 Crore to 25.83 lakh individual taxpayers
• Corporate Tax Refunds: Rs.70540 Crore to 1.71 Lakh corporates
The question arises why taxpayers had to pay extra income tax and then demand refund of excess tax paid. Whether all claims by individual taxpayers were genuine? Sometime back it was reported that smart people are able to fool IT Authorities.
Some of the reasons could be:
1. Whether TDS rates are high
2. Whether there are too many exemptions
The possible solution is to reduce TDS rate to 1% for every one as all transactions are now recorded in Form 26AS. The balance amount of tax can be paid as Self - Assessment Tax prior to filing the I T Return.
I request all local circle members to comment why this is happening and what is the solution for taxpayers to pay only the exact amount of tax. more