• I Paid A Bribe
• 13 years ago
• 1676 views

Untracable tax deducted at sources.

• Income Tax
• TDS
• Paid INR 16,000

When i came to know that my client's employer has deducted tax at sources from salary; i personally verified my client's Form 26AS issued by Income tax dept which should reflect the amount of TDS. But i was surprised when i got to know that the said amount of TDS was not reflected in said form. Problem starts from this point as there were 2 important elements. 1 - TDS amount was more than 250000/- and 2- my client had a tax liability of just rs.40000/- (Approximately) due to some retirement benefits which was exempted from tax. Yet my client's employer which is actually a reputed bank deducted tax on sources of income and asked my client to claim a refund for the same from income tax dept. My client did file the proper income tax return showing the complete fact as per Form 16 and claimed the Income tax return.
While the return was in process Income tax dept denied the claim of refund stating the fact that the tax deducted by employer was not reflected in Form 26AS which is actually means that employer has dedcuted the tax but not paid to central govt. However i got shock when i came to know that employer of my client i.e. Bank has actually paid the same amount of tax in proper govt. challan which is supposed to pay. Hence the employer also refused the claim of Income tax dept.
When i personally ********** the responsible authority from both the Income tax dept and my client's employer; following are the answers given by them on said matter.

Answer by Income tax Officer - The bank has not paid tax correctly and they have not filed the TDS return properly with NSDL in the manner in which they are supposed to pay so that proper credit to the Assessee's Account will be reflected in Form 26AS. Unless and until such amount is not reflected in Form 26AS Income tax dept will not issue Income tax refund to Assessee (My Client)

Bank Manager - The system administration of Income tax dept is defected and they are unable to trace the amount paid by us in Govt treasury through a proper challan. We have paid the said amount of TDS in time and has also reported to NSDL in time.

One thing i would like to mention here to all of you that both the authorities has valid proof with them in support of their statement which was enhansing the confusion in minds of me as well as my client who was worried for not getting his Income tax refund. Moreover NSDL had also refused to comment on this matter as they had view that they are just Data Processing and facilitation center and they are not liable for any unproper or wrong data filing with them regarding TDS return.

In short me and my client were stuck with the situation that where the TDS money lying. Is it with Income tax dept but could not reflected on Form 26AS due to Dept's system error or is it so that employer bank has really not paid to central Govt. One thing was sure my client was unable to get his refund due to this non traceble error.
So at the end after waiting for 2 years my client decided to approach the dept as well as employer to resolve the matter finally with some resort and there came the unwanted visious situation of Bribe. My client actually scoulded me for not offering to bribe to Dept of income tax when he came to know that some of his other colleague has got their income tax refund of sizable amount by paying the proper bribe.

My client literally ordered me to pay the bribe to dept. Officer to get the refund. He could not come personally because he had already left the town permanently. Even on my request to get the refund from legal way was no where means to him as he was required the money badly.

Friends ultimately i had to offer the IT officer the bribe and then amount of cash was handed over by myself to one of his assistant and i got the Income tax refund cheque in the name of my client. Income tax officer managed the rest of legal formality with help of his assistants and my client's employer.

Yes! I had to pay bribe. i feel shame of it but yes I had bribed the Govt Officer for 16000 Rs. I have no right to say that i had no choice but when i see the persons like ********** Hazare, ********** Patkar and ********** Kejrival i have got my lesson. Today i am sharing the above story with all of you with only intention that look once to this matter with third eye view and just think what you will chose; a principle that will make your voice strong that Yes I will not pay bribe or Yes i want such clients who will make my practice growing and going.

Thank you

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