As per the Income Tax Ordinance 1984 Section 48 to Section 56 states about the deduction of Income Tax explained in details. However, when any individual and/or contractors or any legitimated body, Partnership Firm or any Company limited by shares pay taxes during collection of their payments (bills) against their supply and/or services Tax deduction at Source (TDS) in lieu of Sales ,Services, Supply of any goods against any work order, the receiver of services are lawfully bound to deduct Tax against their payments from the renderer (provider) of services at a certain rate which depends on the total volume of the amount. Not only that the same amounts (tax deducted at source) are duly paid to the Government revenue by the debtors. In this event, these taxes are regarded as Tax paid by the service renderer and/or by others in any form this is considered as Tax given under section 64 of the Income Tax Ordinance 1984.
However, there are many incidents that the Taxes paid to the Government Revenue by the service renderer(s) and in few occasions (other than) those are regarded as Tax are paid in full and it falls under final settlement which is applicable under section 82(C). The darkest part of this law is that, these Taxes are paid under section 64 and as such, it cannot be adjusted with any other Taxes payable by the Tax payees to the Govt revenue .Those payable Taxes which derived due to having some income from other sources against which Taxes are payable to the Government revenue any Tax payee (assessee) may think that his advance Taxes paid u/s 64 are adjustable.
Nonetheless, it is observed that an individual who paid TDS against which and that is regarded as final liability and/or issues are to be assessed u/s 82(C) of Income Tax Ordinance 1984, cannot be adjusted with other payable Taxes. Nevertheless, there are certain issues where TDS are not adjustable, for example; taxes assessed u/s 82(C), sur-charges, Tax to be paid for having apartment(s) more than one and sur-charges paid against more than one private transport(s). Taxes paid to the Govt revenue under section 64 (advance Tax paid to renew the documents of the private transport from BR3TA) cannot be adjusted in the next fiscal year (income year). In view, it is to be stated that, there may be some information gap by and between the purchaser(s) and the seller(s) which cannot be adjusted in the following years. All these are very technical issues and in order to prepare a Tax return without any mistake, individuals need to have basic and /or clear ideas. Those (very few percentage of our total assessee and/or total population) who are automatically motivated and want to learn few /new things not known to them, they somehow learn it due to their strong forces.
Those who do this and submit their Tax returns their Tax returns those are found to be defective /faulty. In view, when these issues come up in the eye of the concerned Tax authorities, then they are scrutinized for Orthodox , Desk Audit and/or Audit (approved by the National Board of Revenue, hereinafter referred to as the NBR). Furthermore, beyond the statement as categorized above, there are certain more independent authorities which conduct inspections called as Central Intelligence Cell and Director General of Inspection. They can have their eye always on any Taxes Circle if they desire. On the other hand their jurisdiction is all over Bangladesh. But the basis of their carrying inspection are not known to everyone. That they can carry out inspection all over Bangladesh and the way they act sometimes it appears that internal motive of those authorities are not found citizen friendly and not also matches with the spirit of the law which were taken into consideration to enact the law.
On the other hand, there is a provision of paying sur-charge on total wealth when it exceeds the total assets predetermined by the Taxes Authority. On the other hand, without any knowledge about the INCOME TAX return preparation, our Tax Payees try to prepare Tax Returns with their general conception which they did not learn academically. That somehow gathering some knowledge there are some group of people and as such they dare to prepare their Tax returns and finally they submit. This is the problem on the other hand, since the Tax Return is entirely prepared by a leyman knowledge in that event the use of every law cannot be complied and as such they face undesired hassle which they need to confess alone or to seek professional support to someone.
Before conclusion, it is to be notified that the Tax paid by the payee and received by the Government in its treasury should not be forfeited entirely if it is not claimed during the fiscal year. Rather it may be concluded that if the Tax Payee does not claim during the year the amount paid as Tax may be adjusted later within a time frame where a condition may be imposed. But total amount will be forfeited does not seem to be citizen friendly.
The writer is an advocate
The Main Source of this Article: https://www.observerbd.com/news.php?id=409404
