EXPECTATIONS OF TAXPAYER FROM FISCAL BUDGET 2019 V.2

Before every budget the taxpayer expects shortfall in their tax payments and accordingly recommend for the same.  However we feel there is  urgent need to improve the tax administration which help to reduce the tax terrorism  in the country.  Given below few pain-points of tax payers from Income tax department (ITD) and suggestions before the  government.

SN	Issue	Recommendation
1	For delay in filing Income tax return & E TDS return by tax payer there is mandatory fine. Also there is big list of penalty for any small error done by tax payer.  However no  such fine or penalty is applicable on ITD for any delay or mistake.	The ITD should be penallised for any delay or mistake.  This will bring equal justice in the law.
2	Tax payer receive 6% interest on any refund but require to pay more than 12% interest for any payment	The rate of interest should be same for all cases.  This will reduce discrimination in the law.
3	To match the tax collection target, ITD makes bogus additions and create fake demand and immediately collect 20% tax payment from tax payer.  This creates hardship among all the taxpayer.	The process of providing 100% stay on tax demand should be provided.  This will reduce the process of bogus addition.
4	There is a misuse of Prosecution provisions in the law .  Wherever there is a question of law, the ITD presume same as fraudulent and invoke penalty and prosecution.  Further ITD also given targets to initiate prosecution which again causing  hardship among all the taxpayer	The use of prosecution provisions should be use only when men’s rea confirmed by Court.
5	The appellate authorities fear to take decisions in the favour of tax payer resulting to accumulation of all issues before High Court.	Necessary directions to be given to appellate authority  to dispose the case in favour of tax payer when there is  question of law and not decided by HC and SC.
6	At present for a taxpayer there are multiple tax officer like PAN AO, TDS AO, TPO, Int. Tax officer and CPC Officer.	The taxpayer should only have one tax officer.
7	At present there are multiple tax portal like Incometaxindia.gov.in, Traces, reporting, tin-nsdl.com.  further  this portal are not user friendly.	There should be one user friendly portal for all need.
8	Other that ITR-1 all the Income tax forms are complex  resulting in errors.	All ITD forms should be such simple that can be filled by any layman.
9	Now a days grievances raised in E Nirvana and CPGRAM were closed without providing any resolution to the tax payer.	There should be a next level of escalation in the case tax payer not satisfied with the closure of his grievance.
10	The ITD AO cannot do anything in case there is a error done by CPC.  Further its very not possible to get any help from CPC which is a faceless department.	The ITD AO should be provided all access in case there is any error done by  CPC.

The above recommendations also applicable for GST wherever applicable.