He said that small company rates, which were supposed to be shown in relevant column, were being displayed in other columns, creating immense difficulties for the taxpayers. Moreover, he said that the taxpayers were frequently experiencing link-down. He said that the KTBA had sent letter to the member Inland Revenue and identified problems being faced by the taxpayers.
According to the letter, the normal tax liability and Alternate Corporate Tax (Act) under section 113C are being correctly worked out at code No 920000 and 923173 respectively, however, while working at the Tax Chargeable against code No 9200, the portal is summing up the above two tax liabilities instead of comparing them and then working out tax liability at the higher of the two. As a result of the above, an unreasonable tax liability is being incorrectly worked out and shown.
The appropriate accounting period of companies, who have been permitted to adopt special tax year, are not being shown and all returns are showing an accounting period of July to June. It is recommended that the taxpayer should be given the liberty to define the accounting period, given the fact that there are several corporate taxpayers who have been permitted to adopt special tax year.
The applicable rate for small company @ 25 percent is not appearing in the system rather tax is calculated @ 33 percent, which is applicable for normal companies. Apart from the above specific issues, there are general issues with the operating system of the portal which needs to be addressed. Like in several cases, it has been witnessed that draft saved returns have been either completely or partially lost on the portal when the returns are subsequently logged in again. This is resulting in duplication of work and unnecessary time consumption on the part of the tax return filers. The system frequently stops, which causes wastage of time of the staff involved in performing the duties of preparing and filing returns. Similarly, problems still exist in non-corporate tax returns.