There were two news items in the TOI today - one the above. The second \\\\\\\"Rs.2.14 lakh cr. tax dues by 17 people. Who are these 17 and why the Government cnnot take action to recover these dues. Instead the Govt wants to compensate Banks for their lapse in recoveries.
I have a doubt about tax- deducted at source from salary- that is if a person gets salary after deduction of tax his income is only the amount he received after tax and then the tax ratio is more i.e. 10% or 20% which ever he has to pay-If only the entire salary is paid his income will be as advised by the employer otherwise his income is short by the tax amount deducted.
Even before he draws his monthly salary tax has been deducted from salary. IT babus merrily enjoys target achievement at the cost of this salaried class.
Even then these babus and their puppets as tax consultants always pursue as if they are PAGAL K...E. Because it is easier to sit in office and flash some queries to salaried class and show to their bosses that they are working.
How much tax they are collecting from beach side , road side eateries. One decent road side eatery owner earns min Rs.5000 daily (Rs.1.5 lakh/month). So it is equivalent to the corporate world VPs salary. Can anyone tell me the tax collected by these IT babus from these people.
However, it is also certain that they collect money from traders to disguise tax. There is vitious nexus between traders, small service co and IT local staff to hide the real tax outgo. This is the reason why It babus don't want too much after these tax thieves.
IT is also a big corrupt dept at the cost of honest tax payers.
This article is mainly for salaried person. if You have cash based financial system and the deducter have a mercantile method of accounting then he may credit more money to you in books and pay that much TDs. But filing return one must take whatever is received and put remainder of TDs for next year.
The TDS certificates (Forms 16) given by banks should be carefully scrutinized to avoid problems with IT department. I have noticed that problem is with PSU banks and not with new gen banks. PSU banks employees are either too old to learn computer skills or reluctant to learn it and blame the mistake on the computer. I am now learning this the hard way....running from pillar to post.
