The Biz Reporter
Srinagar, Mar 19: The Kashmir Chamber of Commerce and Industry (KCCI) on Wednesday held an interactive meeting with key officials from the Income Tax Department to address the significant tax-related challenges faced by the business community in Kashmir. The meeting was chaired by Shri Lal Chand, Chief Commissioner of Income Tax (CCIT) Amritsar, along with Shri Vikram Sahay, Principal Commissioner of Income Tax, Srinagar. KCCI’s delegation included Senior Vice President Ashiq Hussain Shangloo, Junior Vice President Fayaz Ahmad Punjabi, Secretary General Faiz Bakshi, Past President Mushtaq Ahmad Wani, Executive Committee members Tauseef Ahmad Bhat, Altaf Ahmad Tramboo, member Muhammad Ashraf Mir.
The meeting was held in a cordial atmosphere which was attended by Chartered accountants, tax consultants and members of the business community. Senior Vice President Ashiq Hussain Shangloo warmly welcomed CCIT Shri Lal Chand and the Principal Commissioner of Income Tax Shri Sahay, emphasising the importance of open dialogue to resolve tax-related challenges faced by the business community. ‘This initiative reflects our collective commitment to addressing concerns and fostering a cooperative environment for business growth and compliance,’ he said. During the meeting, KCCI raised important concerns regarding the freezing of bank accounts, which has severely impacted traders and the general public. Many businesses have found their deposits classified as unexplained credits, leading to tax demands that exceed their financial capabilities. KCCI emphasized the need for a more lenient approach, asking the authorities to consider granting stays at a reduced deposit rate below the standard 20%, in line with previous judicial rulings.The delegation also addressed the issue of delayed processing of appeal effects, which has resulted in substantial outstanding tax demands that remain unresolved. KCCI urged the authorities to expedite these processes to alleviate these financial burdens on taxpayers.
Another key concern discussed was the backlog of rectification applications under Section 154, which has caused significant inconvenience for many taxpayers. KCCI called for these applications to be processed more swiftly to ensure timely resolutions.
KCCI delegation highlighted problems related to misreporting by government deductors, who often deduct TDS on amounts inclusive of GST, causing mismatches in taxable turnover and issues with Form 26AS. This misreporting not only blocks working capital but also leads to prolonged litigations with the State Taxes Department. KCCI emphasized the need for improved accuracy in reporting practices and suggested organising awareness programmes with senior officers of Income Tax Departments, Tax Departments and GST deductee officers to address these issues collaboratively.
Furthermore, KCCI proposed the establishment of a camp office in Srinagar, led by the CIT Exemptions and CIT International Taxation, to raise awareness and provide necessary support for local businesses. The delegation also stressed the importance of the timely disposal of pending appeals before the CIT (Appeals), which would significantly enhance the efficiency of the tax resolution process.The CCIT and Pr CIT gave a patient hearing to the concerns raised and assured full cooperation in resolving the issues. They further stated that they would take up the demand for increasing tax wards in Kashmir with the higher authorities. KCCI thanked the Income Tax Department for organising this interactive meeting.
