PANAJI
Financial experts have opined that there will be more transparency in the system if income tax assessment is made jurisdiction free. It is reported that an internal report of Central Board of Direct Taxes (CBDT) has recommended that jurisdiction shouldn’t play a part in income-tax assessment.
In other words, if you are filing your tax-return from Goa, the assessment can happen from anywhere in India. The fact that assesse and the assessed may no longer be from the same state or same city means that there will be more transparency.
A chartered accountant said, “The idea seems to make the entire income-tax assessment digital. Because only when everything about assessment is online that the assessment can happen from anywhere in India.”
As of now, in Goa, most people file their income-tax returns online. But, after filing the return, some cases may be selected for scrutiny assessment, which requires the person to physically appear before the income-tax officer.
Although, it will result in more transparency, but it remains to be seen as to how scrutiny assessment will happen entirely online.
The chartered accountant said, “Whenever scrutiny happens, certain doubts are asked and to give an explanation, documents have to be submitted. This should also happen online, if tax-assessment has to be made jurisdiction-free.”
This is extremely important or else people may have to physically go out of Goa to wherever assessment will happen, which is not only time-consuming, but will also require paying for travel.
Another chartered accountant said, “This move is aimed at curbing corruption. If a person goes to a tax-officer, who he has known, there is a chance that the assessment will not be transparent. If the assessment happens out of Goa, chances are very low that people will be able to influence the tax-officer.”
As of now, in Goa, income-tax assessing officer sits in Panaji and Margao and people have to go to their offices to explain issues about their return. All this will change once the assessment is made jurisdiction free.
What will also need consideration is that tax filing at the moment is different in Goa compared to other parts of India.
As per section 5A of Income Tax Act, income of married couple is divided equally between husband and wife in Goa, except for salary.
This is applicable to erstwhile Portuguese colonies in India, which also includes union territories of
Dadra & Nagar Haveli and Daman & Diu.
As of now, there’s a separate serial number on the form for section 5A while filing return. It remains to be seen how this will be dealt with once assessment of income-tax payees in Goa can be done in other parts of India.
