How can IT dept collect TDS when they can't give credit for the same to us?

Today we received Intimation u/s 143(1) for my wife from Income tax department for the year ended on 31-3-2008. Major source of her Income is salary and interest from deposits.

To our horror we noticed that although we had paid full tax (Advance tax, TDS deductions and Self Assessment tax) - she was served notice for payment for Income tax along with interest!!!

The delivery staff told me - "Do not worry, sir. There have been some doubts about TDS claims and as a precautionary measure department has not given credit of TDS. Ask your CA (Chartered Accountant) and show all original TDS certificates and you will get the correct order."

Upon simple inspection of the Assessment Order we noticed that except for the Returned Income figure none of the figures on the Assessment Order matched with the filed Return.  Upon a short telephonic discussion with CA, we were advised to approach the Income Tax department directly - as there are too many such cases and they are unable to cope up!

Wonderful. Isn't it? Would any one care to join the party?
As far as TDS is concerned we poor citizens have no say. At the end of the year we collect the TDS certificate from the deductor;  and claim credit while filing the Return. And we expect that it will go smoothly because TDS information is available online on Internet - for any one to see and check. But in India, it does not work that way.

What's the way out? Meet the CA or some tax expert personally, decipher every word written on the Assessment Order, write a letter to the Assessment Officer, submit it to the Assessing Officer - show original TDS certificates; and wait for the revised assessment order!

How a salaried class person is expected to do all this? Who will compensate citizens for all this un-necessary extra work?

I have never managed to understand rationale behind Tax Deducted at Source - particularly when we are regularly paying Income tax every year. If Government is not able to give credit for the collected TDS then it has no moral right to continue with the TDS collection.

I hereby urge every citizens of India to demand abolition of TDS. At least, it should be done for the regular tax payers.

What do you think?

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