Income Tax Department organized an interactive session on Advance Tax and Grievance Redressal with top tax payers of J&K alongwith taxpayers from business fraternity viz. Hotel associations, Tour & Travel operators, Shikara & House Boat association, Chamber of Commerce and tax professionals-Charted Accountants, Advocates & Tax Consultants at “The Chinars” Aaykar Bhawan, Srinagar. The event was attended by around 50 taxpayers and tax professionals including R.A Punjabi (Former President KCCI), Farooq Ahmad (Burza group), Dildar Ahmad (President PHARO group), Abdul Gafoor (Kashmir Art Centre), Bilal Ahmad Dar (Owner of Pick & Choose), Manzoor Seerat Ali Shah (owner of Ali Shah carpets), Charted Accountants & Advocates namely Altaf, Amir Jan, Bashir Ahmad, Manjoor Ahmad Malik, Mustaq Mir. The programme was chaired by M.P. Singh, Pr. Commissioner of Income tax, J&K and Ladakh.
The event was commenced by Shakil Ahmad Ganie, Dy. Commissioner of Income Tax- Srinagar who welcomed the taxpayers and tax professionals and highlighted the importance of paying Advance tax for both taxpayers and the government. He stated that from the taxpayers’ perspective, it helps in managing cash flow as they pay taxes in instalments rather than facing a significant burden at the end of a financial year. It also ensures compliance with tax laws and avoids penalties for non-payment or delayed payment of taxes. For the government, advance tax ensures the availability of funds throughout the year to meet various expenditure requirements and contributes to the stability of the economy. Later, Rahul Padha, Joint Commissioner of Income Tax, Srinagar took the stage and stated that the abrogation of Article 370 of the Constitution and normalization of security scenario in the state has given a much needed impetus to the economy of the state which was in shambles earlier. For the past 2-3 years and particularly from the last year, the valley has seen an unprecedented rise in number of tourists visiting Kashmir. Due to continuous inflow of tourists, almost all sectors including hotels, restaurant & hospitality, tours and travel agencies, local handicrafts, artisans and other allied sectors have flourished which has resulted in generation of employment along with significant increase in the earning capacity of natives of J&K particularly the taxpayers from business fraternity.
However, the area of concern for the I.T department, as discussed by Rahul Padha was that the growth seen in economy and earning capacity of people is not reflected in form of tax payments from the taxpayers particularly the advance tax payments. With the boost in local economy, the department was expecting an increase in number of tax payers and tax collection in form of Advance tax, however, against an anticipated rise the trend has shown a downward slope.
M.P Singh, Pr. Commissioner of Income Tax, J& K and Ladakh while addressing the gathering emphasized that the department through its Risk Management Strategy is closely monitoring the taxpayers who despite having substantial tax liability resort to paying Self Assessment Tax (SAT) while filing their ITR rather than depositing Advance tax as prescribed by the I.T Act. He further cautioned that on account of non compliance from taxpayers with regard to timely and accurately payment of advance taxes, department will be forced to initiate action as per relevant provisions of Income tax act against such non compliant assessees. M.P Singh further highlighted that the department over a period of time has noticed that majority of the assessees in J&K do not comply to the notices and other communications issued by the I.T department in their cases. Due to non responsive nature of the assessees, the Assessing officers are constrained to make additions on the basis of material information available with them which results in creation of huge demands in their cases by the faceless assessment units. Subsequently, when the assessees do not deposit the demand created on the basis of ex-parte assessments in their cases, the I.T department as a last resort, gets the bank accounts of the assessee, attached. In this regard, he advised that the assessees should update their email ids and mobile numbers on Income Tax e-filing portal so that they receive communications from department and respond timely. He further stressed that whenever the assessees receive any notice or any other communication from the department, they should immediately contact their nearest Income tax office or take help of tax professionals and act accordingly. A senior officer from the department explained that in case the bank accounts of the assessees are attached by the department, the assessees may resort to following options:
a) File an appeal before Commissioner of Income Tax (Appeals) under section 250 of the Income tax Act against the assessment order or penalty order which resulted in creation of huge demands and ultimately led to attachment of their bank accounts due to their non compliance. The time limit for filing appeal before CIT(A) is 30 days from the receipt of demand notice. However, the assessee may file an application for condonation of delay alongwith their appeal describing reasonable cause for not filing their appeals timely.
b) As an alternative remedy, the assessee may also opt to file a revision petition under section 264 of the I.T Act in the office of Principal Commissioner of Income Tax (J&K) alongwith relevant supporting documents.
c) Against the unfavourable order passed by Assessing officers, the assessees may file an application for stay of demand in their cases [till the adjudication of appeals filed by them before CIT(A) or revision petition filed before Pr. Commissioner of Income Tax] before their jurisdictional Assessing Officers by depositing 20 percent of demand computed in their cases. This stay application may also be filed before jurisdictional Principal Commissioner of Income Tax alongwith proper justification explaining reasonable cause to restrict demand in their cases to a reasonable limit till the finalization of their appeals or revision petition. By doing so, the assessee’s may get their bank account released and operate them normally.
After an engaging discussion on Advance tax with the participants, the grievances of the taxpayers on different issues such as outstanding demands, refunds, rectifications, appeal etc. were taken up for discussion and duly addressed by the officers of the department. The taxpayers were assured that the department is ever willing to help and guide them in their tax matters and in return expects them to pay their taxes honestly and timely and play their part in progress of the nation.
