Income Tax Return Importance

Many people think that tax returns are voluntary and therefore they are dismissed as unnecessary and burdensome. As we look, it is not a very healthy perspective on tax filing.

Filing a tax return is an annual activity that is seen as a moral and social duty of every responsible citizen of the country. It is the basis for government to determine the costs and criteria of citizens and, between periods of other forms of relief, provides a platform for evaluation to claim refund.

1. Filing return is a sign that you are responsible for

The government has ordered that a person who earns a certain amount of annual income will have to pay a tax return within a pre-determined due date. Calculation tax must be repaid by individual Failure to pay tax will be invited to the income tax department's penalty.

Those who earn less than the fixed level income can voluntarily give compensation.

Filing Return is a sign that you are responsible. Not only that, it makes it easy for individuals and businesses to enter subsequent transactions because their income is paid by the tax department, if any, are paid.

2. In some cases filing returns are mandatory

Even if your income level is not qualified for compulsory filing of compensation, it may be a good idea to voluntarily file a return. In most of the states, there is proof of tax return for the last three years for registration of immovable property. Filing makes redemption easy to document.

3. Your loan or card company might see your return

If you are planning to apply for a home loan in the future, the home loan company will most likely insist on it as it is better to keep a record of filing returns in the future. In fact, if you want to apply for a loan as a co-borrower, you may also want to consider filing your spouse's return. Likewise, credit card companies also emphasize the evidence of return even before returning to the card.

Before dealing with you, financial institutions insist on seeing your return over the past few years. In fact, the government can make them compulsory to do so, which indirectly forces people to register regularly even when volunteering.

4. If you want to claim an adjustment against the past losses, the return is necessary

Filing timely returns have many advantages, even if you build a fixed level of required income to file a return.

Various losses made by individual or business, speculation recorded in tax returns in the financial year and non-speculative, short term and long term capital losses and other various types of damage can not be shown for liberation. In the subsequent years for tax calculation purposes, it is best to file a return regularly, because when you know when to make an arrangement against past losses?

5. Filing Return can be useful in case of a revised compensation

If the evaluation has not filed the original returns, then it will not be able to file a revised compensation later, even if it is actually needed. Under the Income Tax Act, the non-filing of returns is Rs. 5000 can attract a penalty so there is a voluntary activity while giving compensation, often when it has legal information for people who do not, especially if they have to register the revised compensation in the future.

‘GST on fuel: States’ nod key’

He said that it is difficult to maintain a GST in a country like India, although at the same level tax evasion will be required on essential commodities and luxury goods.


Chief Economist Advisor Arvind Subramanian said on Friday that the GST rate slab will go down further and Petroleum Products will be brought under Goods and Services Tax with the help of states.

He said, "In the next few months and years it will be ... and work cooperatively", he said in response to the question that when petrol and diesel are in the GST area and the states will agree for such a move.

(Petroleum Ministry has written a letter to the GST Council to GST Council which wants petrol and diesel to bring under GST, which is unlikely to be good with some state government because they are the main income tax on fuel, petrol and diesel. The other important recovery is the excise duty component. Pump prices are expected to fall if the fuel is brought under GST.)

Sreesum Babaman, who earlier said in the ICFAI Foundation for Higher Education in the lecture on 'Economic Policy Making in the Government', that it is difficult to have a GST rate in a country like India, however, it is essential to tax commodities and luxury items at the same level.

But the country is moving towards lower rates, he said. "What we have done [28] rates are broken [so] that they are only luxury consuming items, then overtime, 12 and 18% [slab] might break at one rate. We will see lower rates," he said.

When this is likely to happen, he said: "We should be comfortable and comfortable with income, I think we will find more ease in the next few months." One more question about the proposal to change the financial year from April - January to December, he said no decision has been taken yet.

In the context of the increasing popularity of the crypto currency, Mr. Subramanian said that officially Bitokon has been banned and the government has the privilege of issuing only currency. People, he added, would also trust the sovereign currency.

WITH 39% VACANCIES, GUJARAT INCOME TAX DEPARTMENT STARES AT EMPTY POSTS

During this period last year, Gujarat's Income Tax Department has struggled to overcome a huge burden of work after announcement of promoterization. This year, if there is no draft-related work load, the department continues to struggle to meet time-bound deadlines, staffing is severely reimbursed. Against the sanctioned strength of 5,829, the department has filled only 3,570 positions, out of which 2,259 vacancies are vacant.


It comes for 38.75% vacancy in the state. Department officials believe that the state needs more officers and officers to fill in vacancies. They believe that Gujarat can not produce enough income officials to fill the vacant posts of its cadre, badly hit the division. A senior official told the mirror, "Most of the officers in this department are from other states. The employees of junior positions are from other states.

Income Tax Return

Realtors want GST for sector be lowered to 6 per cent

NEW DELHI: The National Real Estate Development Council (Naredco) has urged the government to reduce the goods and services tax (GST) by six per cent to real estate sector to increase the demand for new homes.

On Tuesday, the real estate builders' organization said that the GST 6% GST with the inset tax credit would be a win-win situation for all, with Finance Secretary Hashim Adiya and State Minister for Finance and Shipping P. Radhakrishnan. Participants

Naredco chairman Rajeev Talwar said that 6% GDP would encourage capping to encourage investment under construction, which is otherwise waiting to save 12% GST for complete properties. "Buyers stand to benefit because the developers give benefit to the buyers. The government also benefits, because it will raise more taxes due to increase in demand. All this is a win-win situation."

According to Enedo's President Niranjan Hiranandani, the industry has urged the government to increase the land limit from 50% to 30%, because the cost of land is the most important part of any real estate project expenditure.

Builders have claimed that the property of the compulsory property between the tax rate and the property under construction increased the problem.

"The GST rate for GrowthRate under construction is 12%, while it is 0% in ready-to-do properties. It makes comparison-ready assets attractive with the under-construction properties. The reduction in fresh and continuous demand,"Naredco  said.

Film industry estimates ₹200 crore hit due to GST

The Kannada film industry is estimated to have lost more than 200 crores in about five months in the reign of Goods and Services Tax (GST). Apart from this, the commercial tax department, based on the data generated so far, believes the tax reduction in entertainment segment has dropped by 30 percent.

"We expect to reduce the production of the film," said Umesh Bannar, vice-president, Karnataka Field Chamber of Commerce (KFCCC). The release of the GST by the end of this year will be able to cross 200 mark.

Regional films in Karnataka, which enjoyed entertainment tax exemption, now have to compete with other films due to GST. The government, which promises to reimburse the Kannada film industry, has failed to do so so far.

Incidentally, the eight-decade-old Kannada film industry has set a record in 2016 with the introduction of 180 films, and has been a small industry in Tamil and Telugu industries.

"So far, more than 160 Kannada Fields have been released and this year is expected to reach 190. If they were not for GST and Mudradian, then 50 other films would have been made and released, and turnover Rs 500 Exceeding a million mark. "

Most manufacturers, exhibitors and distributors believe that shortly after the process of promoting the Kannada film industry, the GST began to be brought out, which also affected the industry. Producers are not in a position to get a refund of the input tax paid under GST.

"If a producer makes a film with Rs 2 crore, it will have to pay the input tax. However, due to the problem with the tax system, the credit of the input tax can not be obtained against the tax," says P.H. Baba, producer of Kannada films, distributor, exhibitor and finance.

"The earliest production in the Kannada film industry is no money, the production has increased because new producers are coming up with the project, the film industry has floated, these manufacturers can also get out due to fear of higher taxation and declaration," Thomas D'Souza, exhibitor And former president of KFCCC said.

Dipping into the tax collection

"The income generated from entertainment tax is declining, the data has dropped by 30 percent, both multiplexes and single screens are affected," said an official of the Commercial Tax Department.

Sources said that the entertainment tax collection for April, May and June was ₹ 35 crores, while the collection decreased for August 26, August and September.

Tax officials said that due to technical problems, we can not accurately calculate entertainment tax collection.

The state wants to leave the center 8% CGST

The Kannada film industry is upset with the state government to fail to comply with the promise to save Kannada films, which was exempted from entertainment tax before the GST regime. Regional films in Karnataka are enjoying exemption for the past two decades.

KFCC delegation met Chief Minister Siddaramaiah to help the Kannada film industry. However, expressing his helplessness, the Chief Minister received the release of Finance Minister Arun Jaitley and 8% CGST, which will help him to get rid of the remaining 8% of SGST, "Vice President Shri Umesh Banarar said. KFCCC

He explained that the Kannada film industry is not ready to compete with films in other languages.

"Although Mr Siddhmaiya had agreed to charge 5% tax on films in other languages, the officials failed to implement it" SV Rajendra Singh Babu, President, Karnataka Chalanachitra Academy.

Sources in the Information and Public Relations Department said that the proposal is in line with the finance department.

Entertainment tax

* At one time, all the movies displayed in Karnataka were 110%

* To promote Kannada films, the successive government reduced the rate to 30%

* In the mid-90s, Kannada, Tulu, Koda, Konkani and Lemni films were exempt from this tax.

₹ Income of Rs 243 crore in the last financial year

* Six states have exempted films from tax in local languages

* Do not entertain in 10 states

From Income Tax rates cut to enhancing social security, what Finance Minister Arun Jaitley should target in Budget 2018?

India may be one of the fastest growing economies in the world, but the fact is that nearly 3% of its population currently pay income taxes, and many government efforts to increase tax compliance and tax base have failed to bear many results so far. Even though the new taxpayer has increased to 84.21 lakh in 2016-17 from 66.53 lakh to 26.6 percent in 2016-16, following monetization of high-value currency notes, is it enough? Have you ever wondered why a large number of people still in India are eager to pay taxes? One of the main reasons is that they believe they do not get anything in return, social security or other benefits, even if they pay taxes or more taxes than others, but it is not entirely true.

Whatever the case, tax experts believe that salaried individuals often follow taxation, because the tax on wages income is deducted from the source by the employer. Likewise, the income received by individual taxpayers, such as interest on bank deposits on a particular threshold, is subject to tax registration by banks automatically registered by tax officials.
"The challenge is sometimes wrong in the case of income earned by businesses and businesses. There are various reasons for inadequate compliance, including high rates of taxation, fear of verification and evaluation procedures, in case of time and effort, lots of complaints, including co-operation to satisfy compliance requirements, excessive litigation etc. In addition to the cultural decades, people are not compatible with tax rules Due to the lack of waste and strong enforcement this issue is added. Therefore, we can say that in some cases there is lack of mentality issues and law enforcement in the society, "says Vikas Vasal, Partner and National Leader-Tax, Grant Thornton India LLP.
How can tax compliance be increased?

Tax experts say that tax awareness in India is low. People are not adequately educated to understand that the taxes they pay will ultimately lead to the development of the nation and therefore contribute to overall well-being. "There are many facilities that the common man needs today and this requires huge investments, tax is a significant part of this and therefore all the taxpayers need to pay regularly," says Chetan Chadak, head of tax research, H & R Block India.
After knowing about how Indian taxation is used, India will pay more taxes, which are already done by the government through various advertisements and awareness programs, but more needs to be done. "People need to be encouraged by non-infiltrators to meet the tax liability and need to take strong action to send a message to any clear case of tax evasion, Vassal says, at the same time, keep in mind that actual taxpayers will not be late in the process. Should
Experts also believe that by providing social security, more and more people will be encouraged to pay taxes because they believe they get compensation. In fact, "Generally in a country where the government can provide a strong social security system, people do not worry about any potential and there is little concern to raise large amounts," says Chandak.

Another aspect that needs to be addressed is that many positive changes have been introduced at the policy level, the ground level experience has been similar and needs to be modified. Superbly, "In the recent past, a number of initiatives have been initiated by the government and the results will be seen on time, including the addition of support for PN, mobile phones, bank accounts etc. Further, with the introduction of GST, we hope that once things get stalled We should see more and more businesses coming under the tax net. Similarly, post remuneration, the number of personal tax increased, "said Vassal Is.

Some tax experts believe that in the last few years the government has taken considerable steps to increase the overall taxpayer base and reduce effective tax rates, there is still a lot to be done in this regard. "By taking some bold action, such as certification, digitization, support implementation, direct benefit transfer, and GST implementation, the current government has proved that it has the desire and enthusiasm to take things at the next level. However, if it is more and more taxpayers in the tax net If you have a desire to bring it, then it will have to focus more on the digital economy, reduce corruption and tax rates (both directly and parochial J) he will bring down, "observes candaka.
Digitization will help the government by breaking tax evasion, increasing revenue and reducing tax rates. In turn, reduction rates can help the government in promoting voluntary compliance by taxpayers, resulting in higher tax evasion.
"It is generally seen that if the rate of tax is brought down, tax compliance increases, and in the Indian context, there is a hope that tax recovery will increase, so that the budget 2018 can be a good opportunity for the government to adopt this path. Vasal says that the tax rate Decrease.
However, will it happen? It remains to be seen.

Aadhaar for PAN, ITR: SC questions maintainability of plea

The Supreme Court today questioned the maintenance of the application challenging the provision to file a support and income tax return with PAN number.


The apex court said that the provision of the Income Tax Act has been approved by making a compulsory mandatory filing of a tax return in the allotment of permanent account number (PAN) and the judgment given in June this year.

Now, how can this application be maintained? We supported the bribe (provision), now the verdict on the right of privacy has come, but there is no verdict on the basis. How has this application been filed? "Justice AK Sikri and Ashok Bhushan asked.

Leader of CPA, petitioner Benois Visamam, appealed to the lawyers, withdrew the argument.

The bench allowed the freedom to file an application for intervention in the main case, which is scheduled to be scheduled for hearing before the Constitution Bench in the last week of this month.

The Supreme Court upheld the income tax department section 139A on June 9, in which compulsory support was made for filing a PAN card and filing a tax return, but partly on implementation of the privacy rights by the bench in the Bench Invested.

Later, the dissolution of the Constitution was declared as the fundamental right of privacy.

In the Section 139 of the Income Tax Act, this year, for filing income tax returns from July 1st this year, the name of the PF or the support application form has been filed for issuing compulsory tickets and allotment of PAN.

Meanwhile, the Supreme Court today refused to hear a separate application, which gave the challenge to link support to bank accounts.

The court said that it can not hear many applications arising out of such problem and the applicant has ordered an application for intervention in the main case.

After teething pain, MSMEs stand to gain under GST

Implementation of Goods and Services Tax (GST) on 1 July 2017, it has placed subtle, small and medium enterprises (MSME) at the place of bother. Together with monetization, GST changes the market dynamics for these units.


In the previous tax regime, companies having annual turnover of Rs 1.5 crore were exempted from the excise duty. For most states under GST, the threshold has been reduced to Rs 20 lakh. In addition, Job Work Units, which were previously not responsible for paying taxes, were brought under the GST net, such as a disruptive effect on industries like textiles and gems and jewelery, where workers are an integral part of the supply chain.

The government has given Rs. Tried to reduce the burden of adherence to small units by allowing units with turnover of 1.5 crores.


The government has to pay Rs. For the formation plan (which can pay the flat rate of tax on its turnover). The upper limit of turnover for 1 crore (Rs. 75 lakhs) has also been increased, although it will not be able to choose from the manufacturers, traders, and restaurant selection companies, the input tax credits (ITC) and interstate supply units are not eligible for the scheme.

Crisil Research's interactions suggest that many MSME organizations will hesitate to choose the plan because they are worried that big players will stop buying from them.

Two other provisions of the damage to MSME are the reverse charge mechanism, which is responsible for paying the tax on the tax received from the suppliers without the buyer and can be claimed in the matching principle when the purchase invoice purchased by the buyer's supplier matches the invoices and the GST paid by the supplier. is coming.

This adversely affects the cash flow of MSME, however, MSME will have a little more time to make the necessary adjustments with the responsibility of paying tax under the Reverse Charge Mechanism suspended until March 2018.

However, the negative impact will be partly compensated on all inputs used or used for the promotion of ITC through the availability of ITC. This provision indicates that businesses are GST Payments over overhead such as repairs and maintenance, printing and frozen, etc., which were not previously allowed.

Our assessment suggests that MSME's cash flows and construction sector in synthetic textiles will become intense in the medium term due to effective tax component and / or change in credit term. However, in the near term, however, MSME feels Pitch because most businesses have delayed payment to small suppliers in many cases as they try and manage cash flows under GST.

Concern is also on MSME's ability to compete with large corporates in post-GST era. According to Crisil Research, MSME competitiveness will be determined by the extent of tax arbitrage, their status in the value chain, labor cost arbitrage, product offering, local market knowledge, and proximity to customers. Based on tax evasion, most of the existing sectors, such as steel sector, plywood sector and small units of merchant units, can find tough reasons for that.

GST can lead to structural changes in industry value chains, over a period of time.

For example, FMCG (Fast Moving Consumer Goods) companies can increase the reliance on distribution, as opposed to reaching retailers through a wholesaler. The business case has improved for direct distribution of high volumes at the end of retailers.

In addition, FMCG players forwarded on direct distribution as a result of liquidity freeze in subsequent exchange of wholesale channels. GST will make the reconstruction and integration of wholesale channels faster in FMCG sector.

In textile, taxation is imposed on value assessments in each stage of the manufacturing process, as well as job work, organized, integrated players are likely to take the same activity at the expense of decentralized units.

However, once the dust is stagnant, organized MSMEs will stand to benefit from the unified Pan-India market thrown by GST. They can also get market share from players competing based on tax avoidance. Boost profitability in the medium term to help eliminate the taxing effectiveness of tax and efficiency from logistics.

It will be able to achieve efficiency for MSME procurement across the board, as ITC can be claimed where procurement is available. MSMEs can start looking out of their existing markets because taxation will end in consideration.

The most important thing is that, the participant MSME will increase the transparency after post-GST, making it easier to secure formal funding at a competitive rate.

However, Corporates and MSME can do the introduction of E-Valley Bill with clarity on the road map, logical

You should know six things about new GST rates

Tax rates include 200 items, beauty products, chewing gum, chocolate, coffee and custard powder, among the Oters, 18 per cent to 28 per cent including the War Slsed, Finance Minister Arun Jetli said in a meeting of Guwahati 23 GST Council. The committee has also made changes in the planning plan. The GST Council has also decided that the total annual turnover of the taxpayers is Rs. 1.5 crores, need to file GSTR-1 on a quarterly basis, while Rs. Taxpayers need to file GSTR-1 on a monthly basis with a turnover of Rs 1.5 crore.

Six things to know about new GST rates

1) Top 28 percent Goods and Service Tax (GST) slabs per council list items per order were patrolling only 50 turn 228. So, only Lczri and sin Goods Array now only moved up to 18 percent of the arrears coming in the high tax slab and the items used to exclude daily. Jaitley has said that the Council is on 28% of the list of pruning months

2) Provide cheap food: In addition to the benefits of Input Tax Credit (ITC), all restaurants will be charged 5% on GST. However, in a star hotel at a five-star hotel, Rent from Rs 7,500 to Rs 7,500, attracts 18% and can still get ITC benefits. Outdoor catering input will attract 18 percent GST with tax credit advantage

3) The highest tax rate of 28 percent will still be imposed on goods like spices, arted water and drinks, singers and cigarettes, tobacco products, cement, points, perfumes, acks, dish washing machines, washing machines, Refrijrators, vacuum cleaners, cars and Two-wheelers, aircraft and yachts. "This rate of repetition is expected to increase the expectation of Priss Redke and Ksumption and thereby to increase the growth in consumer products and retail industry," said a statement in India.

4) GST has reduced from 12% to 18% on 13 items.

5) GST has been brought up to 28% in 12% GST slab on two items. Six things have been reduced from 18% slab to 5%, GST reduced from 5% to 18% on eight items.

6) Tax on six items has been reduced from zero to 5 percent. Taxes on wet grinders and armored vehicles were reduced from 28% to 12%, tax on six items reduced from 18% to 5%, from 12% to 5% 8 items and from 5% to zero on six things. Click here to get the full list of tax deduction.

Experts and industry reduce tax rates

23 GST Council welcomed the result of the meeting with Shyam Brtia Chairman and Green Brtia said in a statement Jubilant Foodworks co-chairman Said B was the Indian government welcomed Redke s 18% to 5% patrolling patrols. This was a very progressive step on which to create Will manage more affordable home-cooking and eating-for-customers and towards a significant increase in organized restaurant segments ોરી જશે. "" આ પુનરાવર્તનો આ દર અરે અપેક્ષિત Priss Redke અને Ksumption અને Therebi ગ્રાહક ઉત્પાદનો અને રિટેલ ઉદ્યોગ માટે વૃદ્ધિ લાવવા વધારો કરવા માટે "એક નિવેદનમાં અય ભારત સેઇડ.

"Decrease rate from 18 percent to 28 percent on 178 items is in the right direction and shows policy shift from the principle of 'Akviwlens'. So what is the structure and patches for patrolling Konsumers. It was better that the Bay walls were 28 per cent slab there were more anti-profit Provisions and market dynamics are cut in the coming months in the coming months, which will lead to the next two low-tax slabs, this should lead to a reduction in priss for consumers, only the necklace ન, Leedr- પીડબલ્યુસી પરોક્ષ ટેક્સ

Angel Research believes that the rate cut should be anti-inflammatory. "The GST rate should be HVP of this huge pruning should have anti-inflation effect, and for the impact of inflation of the Princess of Upper Oil," said Mrs. Mayuresh Joshi, manager of Angel Research Fund.

Revenue in Rs. Will cut 20,000 crores

Bid merchants and businesses end up filing negative liability tax filers, revenue secretary Hsmuks to Adia side to reduce the compliance burden for a penalty for negative filing of negative filing negative returns of 200 rupees per day.

Takspaers Revenge Unble file in all fact cases July, August and September 20l7klet Fay resident Vved said in a large number of their returns in the form Gstr-3B, within a fixed date of the month.

Export of services to Nepal and Bhutan has already been exempted from GST. Now it has been decided that such exporters are also eligible for the claim. In Nepal, Nepal and Bhutan, there is a need for exemption from services.

GST Council has set an extended date for introducing specific forms

Aadhaar Mandatory for filing IT Returns: Madras HC

Mr. Thiagarajan Kumararaja Vs Union of India (Madras High Court)

It was observed that though the PAN is issued under the provisions of Section 139A of the Act, its function is not limited to giving this number in the income tax returns or for other acts to be performed under the Act as mentioned in Sub-Sections (5), (5A), (5B), 5(C), 5(D) and (6) of Section 139A. It was further observed that Rule 114B of the Rules mandates quoting of this PAN in various other documents pertaining to different kinds of transactions listed therein. It was also observed that for doing many activities of day to day nature, including in the course of business, the PAN is to be given and in the absence of a PAN, it will be impossible to undertake any of the activities, though its requirement is aimed at curbing the tax evasion. It was further observed that if the PAN of a person is withdrawn or is nullified, it definitely amounts to placing restrictions on the right to do business.

Then, the Hon’ble Supreme Court proceeded to frame the question as to whether these restrictions are reasonable and meet the requirement of Clause (6) of Article 19. After referring to the decision in the case of Modern Dental College and Research Centre Vs. State of Madhya Pradesh [reported in 2016 (7) SCC 353], proceeded to discuss as to whether the restrictions, which would result in terms of the Proviso to Sub-Section (2) of Section 139AA of the Act, are reasonable or not. On this question, it would be beneficial to refer to certain paragraphs viz. paragraphs 122, 124 and 125 of the decision in the case of Binoy Viswam, as under :

“122. While considering the aforesaid submission of the petitioners, one has to keep in mind the aforesaid purpose of the impugned provision and what it seeks to achieve. The provision is aimed at seeding Aadhaar with PAN. We have already held, while considering the submission based on Article 14 of the Constitution, that the provision is based on reasonable classification and that has nexus with the objective sought to be achieved. One of the main objectives is to de-duplicate PAN cards and to bring a situation where one person is not having more than one PAN card or a person is not able to get PAN cards in assumed/fictitious names. In such a scenario, if those persons who violate Section 139AA of the Act without any consequence, the provision shall be rendered toothless. It is the prerogative of the Legislature to make penal provisions for violation of any law made by it. In the instant case, requirement of giving Aadhaar enrolment number to the designated authority or stating this number in the income tax returns is directly connected with the issue of duplicate/fake PANs.
….

“124. Therefore, it cannot be denied that there has to be some provision stating the consequences for not complying with the requirements of Section 139AA of the Act, more particularly when these requirements are found as not violative of Articles 14 and 19 (of course, eschewing the discussion on Article 21 herein for the reasons already given). If Aadhar number is not given, the aforesaid exercise may not be possible.

125. Having said so, it becomes clear from the aforesaid discussion that those who are not PAN holders, while applying for PAN, they are required to give Aadhaar number. This is the stipulation of sub-section (1) of Section 139AA, which we have already upheld. At the same time, as far as existing PAN holders are concerned, since the impugned provisions are yet to be considered on the touchstone of Article 21 of the Constitution, including on the debate around Right to Privacy and human dignity, etc. as limbs of Article 21, we are of the opinion that till the aforesaid aspect of Article 21 is decided by the Constitution Bench a partial stay of the aforesaid proviso is necessary. Those who have already enrolled themselves under Aadhaar scheme would comply with the requirement of sub-section (2) of Section 139AA of the Act. Those who still want to enrol are free to do so. However, those assessees who are not Aadhaar card holders and do not comply with the provision of Section 139(2), their PAN cards be not treated as invalid for the time being. It is only to facilitate other transactions which are mentioned in Rule 114B of the Rules. We are adopting this course of action for more than one reason. We are saying so because of very severe consequences that entail in not adhering to the requirement of sub-section (2) of Section 139AA of the Act. A person who is holder of PAN and if his PAN is invalidated, he is bound to suffer immensely in his day to day dealings, which situation should be avoided till the Constitution Bench authoritatively determines the argument of Article 21 of the Constitution. Since we are adopting this course of action, in the interregnum, it would be permissible for the Parliament to consider as to whether there is a need to tone down the effect of the said proviso by limiting the consequences.”

Hon’ble Supreme Court has not granted stay of Section 139AA(2) of the Act, but its validity has been upheld and the limited stay, which was granted by the Hon’ble Supreme Court, was only to facilitate other transactions, which are mentioned in Rule 114B of the Income Tax Rules, 1962 (hereinafter called the Rules). Therefore, the Hon’ble Supreme Court having upheld the provisions of Section 139AA of the Act, the partial stay granted was only restricted to transactions mentioned in Rule 114B of the Rules and hence, the question of permitting the petitioner to file manual returns without furnishing the aadhaar number is not sustainable and that was not the judgment of the Hon’ble Supreme Court.

On a reading of the above quoted paragraphs in the decision in the case of Binoy Viswam, it would clearly show that the Hon’ble Supreme Court has not stayed the Proviso to Sub-Section (2) of Section 139AA of the Act and the partial stay would be applicable only to facilitate the other transactions, which are mentioned in Rule 114B of the Rules, which pertains to transactions, in relation to which, PAN is to be quoted in all documents for the purpose of Clause (C) of Sub-Section (5) of Section 139A of the Act. Therefore, to state that the partial stay granted by the Hon’ble Supreme Court would enure to the benefit of the petitioner even for filing income tax returns is a plea, which is not sustainable and is liable to be rejected.

Also Read- Madras HC allows filing of IT return without insistence on Aadhar

Full Text of the High Court Judgment / Order is as follows:-

Heard V. Prashanthkiran, learned counsel for the petitioner, Mr. Rabu Manohar, learned Senior Panel Counsel for the Central Government and Mr. G.Rajagopalan, learned Additional Solicitor General assisted by Mrs. Hema Muralikrishnan, learned Standing Counsel appearing for the Income Tax Department. This Court also heard Mr. Suhrith Parthasarathy, learned counsel, who intervened in the matter, as he had appeared in another writ petition in W.P.No.27826 of 2017 wherein an identical prayer is sought for and a interim order has been granted on 31.10.2017.

2. In fact, the petitioner, in the typed set of papers filed in this writ petition, has enclosed the interim order granted by this Court on 31.10.2017, which is quoted herein below :

“Heard Mr.Suhrith Parthasarathy, learned counsel for the petitioner.

2. The petitioner before this Court is a practicing advocate and she has filed this writ petition praying for a direction to the third respondent to allow her to file income tax returns for the assessment year 2017-18 either manually or through e-filing facility without insisting for production of an aadhar number/card or enrollment identity as defined under Section 139AA of the Income Tax Act, 1961.

3. The petitioner’s case rests upon the decision of the Hon’ble Supreme Court in the case of Binoy Viswam Vs. Union of India [reported in (2017) 396 ITR 66] wherein the Hon’ble Supreme Court pointed out that since the impugned provision therein (Section 139AA of the said Act) is yet to be considered on the touchstone of Article 21 of The Constitution including on the debate around the right to privacy and human dignity, etc. as limbs of Article 21, till the aforesaid aspect of Article 21 is decided by the Constitution Bench, a partial stay of the aforesaid proviso is necessary. In respect of those assessees, who do not have an aadhar card and who do not comply with the provisions of Section 139AA(2), it was held that their PAN cards cannot be treated as invalid for the time being.

4. The matter has now been referred to a Constitution Bench, which is to hear the matter sometime by the end of November 2017. It is seen that in identical circumstances, one of the assessees by name Prasanth Sugathan moved the High Court of Kerala by filing W.P.(Civil).No.26033 of 2017 (D) wherein a similar relief was sought and the High Court of Kerala, by an order dated 04.8.2017, issued a direction to the third respondent therein to allow the petitioner therein to file income tax returns manually without insisting upon the aadhar number or card or enrollment number pending disposal of the writ petition. I am inclined to grant a similar relief, since today being the last date for filing the income tax returns. If the income tax returns are filed belatedly and if, ultimately, the matter is decided by the Constitution Bench of the Hon’ble Supreme Court against the petitioner, then she may be liable for payment of interest for belated payment of tax. The balance of convenience is in favour of the petitioner for the grant of appropriate interim order.

5. Accordingly, there will be an interim direction to the third respondent to permit the petitioner to file her income tax returns for the assessment year 2017-18 either manually or through appropriate e-filing facility without insisting for the aadhar number and/or enrollment ID. Notice to the respondents is accepted by Mr.Navin Durai Babu, learned Standing Counsel for the Revenue. He seeks time to get instructions and file counter. List on 18.12.2017.”

3. In this writ petition, the petitioner seeks a direction to the third respondent to grant permission to him to file his income tax returns for the assessment year 2017-18 either manually or through appropriate e-filing facility without insisting the petitioner to produce his aadhaar card and/or enrollment ID as defined under Section 139AA of the Income Tax Act, 1961 (hereinafter called the Act) and not to initiate coercive action against the petitioner.

4. The petitioner’s case rests upon the decision of the Hon’ble Supreme Court in the case of Binoy Viswam Vs. Union of India [reported in (2017) 396 ITR 66]. It is the submission of the petitioner that the Hon’ble Supreme Court granted a partial stay of the Proviso under Sub-Section (2) of Section 139AA of the Act and that the assessees like the petitioner, who have not enrolled under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act 2016 (hereinafter called the Aadhaar Act) and who do not comply with the provisions of Section 139AA(2) of the Act, cannot have their Permanent Account Number (PAN) treated as invalid until the Supreme Court hears and determines the larger challenge, in which, the validity of the Aadhaar Act has been assailed.

5. It is his further submission that on a reading of the judgment of the Hon’ble Supreme Court in the case of Binoy Viswam, it is clear that the respondents cannot insist that persons like the petitioner, who have not enrolled under the Aadhaar Act and who do not wish to enroll themselves, must quote their aadhaar number or their enrollment ID in order to file their income tax returns in accordance with Section 143(1) of the Act. It is also submitted that without disclosing the aadhaar number, the petitioner would be unable to file his income tax returns and that therefore, the petitioner seeks a direction to the third respondent to permit him to file his returns without production of the aadhaar number.

6. The learned Additional Solicitor General submits that the contention raised by the petitioner is a clear misreading of the judgment of the Hon’ble Supreme Court in the case of Binoy Viswam and that the Hon’ble Supreme Court has not granted stay of Section 139AA(2) of the Act, but its validity has been upheld and the limited stay, which was granted by the Hon’ble Supreme Court, was only to facilitate other transactions, which are mentioned in Rule 114B of the Income Tax Rules, 1962 (hereinafter called the Rules). Therefore, the Hon’ble Supreme Court having upheld the provisions of Section 139AA of the Act, the partial stay granted was only restricted to transactions mentioned in Rule 114B of the Rules and hence, the question of permitting the petitioner to file manual returns without furnishing the aadhaar number is not sustainable and that was not the judgment of the Hon’ble Supreme Court.

7. I have heard the learned counsel on either side and carefully perused the materials available on record.

8. The Hon’ble Supreme Court, in the case of Binoy Viswam, pointed out that on the one hand, the enrollment under aadhaar card is voluntary, however, for the purposes of the Act, Section 139AA makes it compulsory that for assessees to give aadhaar number, which means that in so far as income tax assessees are concerned, they have to necessarily enroll themselves under the Aadhaar Act and obtain aadhaar number, which will be their identification number, as that has become the requirement under the Act.

9. It has been further held by the Hon’ble Supreme Court in Binoy Viswam that the contention that since enrollment under the Aadhaar Act is voluntary and cannot be made compulsory under the Act, was rejected. It has also been held that the purpose behind the Act namely the Income Tax Act, 1961 is entirely different and the purpose being to curb black money, money laundering and tax evasion, etc. It has been further held that for achieving such objects, if the Parliament chooses to make the provision mandatory under the Act, the competence of the Parliament cannot be questioned on the ground that it is impermissible only because under the Aadhaar Act, the provision is directory in nature. The Hon’ble Supreme Court also held that it is the prerogative of the Parliament to make a particular provision directory in one Statute and mandatory/compulsory in the other and that by itself cannot be a ground to question the competence of the Legislature.

10. In paragraphs 113 and 114 of the judgment, the Hon’ble Supreme Court, in order to consider the submissions advanced, bifurcated Section 139AA of the Act into two parts and observed as follows :

“113. In order to consider the aforesaid submissions, we may bifurcate Section 139AA in two parts, as follows:

(i) That portion of the provision which requires quoting of Aadhaar number (Sub-Section(1)) and requirement of intimating Aadhaar number to the prescribed authorities by these who are PAN holders (Sub-Section (2)).

(ii) Consequences of failure to intimate Aadhaar number to the prescribed authority by specified date.

114. Insofar as first limb of Section 139AA of the Act is concerned, we have already held that it was within the competence of the Parliament to make a provision of this nature and further that it is not offensive of Article 14 of the Constitution. This requirement, per se, does not find foul with Article 19(1)(g) of the Constitution either, inasmuch as, quoting the Aadhaar number for purposes mentioned in Sub-Section (1) or intimating the Aadhaar number to the prescribed authority as per the requirement of Sub-Section (2) does not, by itself, impinge upon the right to carry on profession or trade, etc. Therefore, it is not violative of Article 19(1)(g) of the Constitution either. In fact, that is not even the argument of the petitioners. Entire emphasis of the petitioners submissions, while addressing the arguments predicated on Article 19(1)(g) of the Constitution, is on the consequences that ensue in terms of proviso to Sub-Section (2) inasmuch as it is argued, as recorded above, that the consequences provided will have the effect of paralysing the right to carry on business/ profession. Therefore, thrust is on the second part of Section 139AA of the Act, which we proceed to deal with, now.”

11. After rendering the above finding, it was observed that though the PAN is issued under the provisions of Section 139A of the Act, its function is not limited to giving this number in the income tax returns or for other acts to be performed under the Act as mentioned in Sub-Sections (5), (5A), (5B), 5(C), 5(D) and (6) of Section 139A. It was further observed that Rule 114B of the Rules mandates quoting of this PAN in various other documents pertaining to different kinds of transactions listed therein. It was also observed that for doing many activities of day to day nature, including in the course of business, the PAN is to be given and in the absence of a PAN, it will be impossible to undertake any of the activities, though its requirement is aimed at curbing the tax evasion. It was further observed that if the PAN of a person is withdrawn or is nullified, it definitely amounts to placing restrictions on the right to do business.

12. Then, the Hon’ble Supreme Court proceeded to frame the question as to whether these restrictions are reasonable and meet the requirement of Clause (6) of Article 19. After referring to the decision in the case of Modern Dental College and Research Centre Vs. State of Madhya Pradesh [reported in 2016 (7) SCC 353], proceeded to discuss as to whether the restrictions, which would result in terms of the Proviso to Sub-Section (2) of Section 139AA of the Act, are reasonable or not. On this question, it would be beneficial to refer to certain paragraphs viz. paragraphs 122, 124 and 125 of the decision in the case of Binoy Viswam, as under :

“122. While considering the aforesaid submission of the petitioners, one has to keep in mind the aforesaid purpose of the impugned provision and what it seeks to achieve. The provision is aimed at seeding Aadhaar with PAN. We have already held, while considering the submission based on Article 14 of the Constitution, that the provision is based on reasonable classification and that has nexus with the objective sought to be achieved. One of the main objectives is to de-duplicate PAN cards and to bring a situation where one person is not having more than one PAN card or a person is not able to get PAN cards in assumed/fictitious names. In such a scenario, if those persons who violate Section 139AA of the Act without any consequence, the provision shall be rendered toothless. It is the prerogative of the Legislature to make penal provisions for violation of any law made by it. In the instant case, requirement of giving Aadhaar enrolment number to the designated authority or stating this number in the income tax returns is directly connected with the issue of duplicate/fake PANs.
….

“124. Therefore, it cannot be denied that there has to be some provision stating the consequences for not complying with the requirements of Section 139AA of the Act, more particularly when these requirements are found as not violative of Articles 14 and 19 (of course, eschewing the discussion on Article 21 herein for the reasons already given). If Aadhar number is not given, the aforesaid exercise may not be possible.

125. Having said so, it becomes clear from the aforesaid discussion that those who are not PAN holders, while applying for PAN, they are required to give Aadhaar number. This is the stipulation of sub-section (1) of Section 139AA, which we have already upheld. At the same time, as far as existing PAN holders are concerned, since the impugned provisions are yet to be considered on the touchstone of Article 21 of the Constitution, including on the debate around Right to Privacy and human dignity, etc. as limbs of Article 21, we are of the opinion that till the aforesaid aspect of Article 21 is decided by the Constitution Bench a partial stay of the aforesaid proviso is necessary. Those who have already enrolled themselves under Aadhaar scheme would comply with the requirement of sub-section (2) of Section 139AA of the Act. Those who still want to enrol are free to do so. However, those assessees who are not Aadhaar card holders and do not comply with the provision of Section 139(2), their PAN cards be not treated as invalid for the time being. It is only to facilitate other transactions which are mentioned in Rule 114B of the Rules. We are adopting this course of action for more than one reason. We are saying so because of very severe consequences that entail in not adhering to the requirement of sub-section (2) of Section 139AA of the Act. A person who is holder of PAN and if his PAN is invalidated, he is bound to suffer immensely in his day to day dealings, which situation should be avoided till the Constitution Bench authoritatively determines the argument of Article 21 of the Constitution. Since we are adopting this course of action, in the interregnum, it would be permissible for the Parliament to consider as to whether there is a need to tone down the effect of the said proviso by limiting the consequences.”

13. On a reading of the above quoted paragraphs in the decision in the case of Binoy Viswam, it would clearly show that the Hon’ble Supreme Court has not stayed the Proviso to Sub-Section (2) of Section 139AA of the Act and the partial stay would be applicable only to facilitate the other transactions, which are mentioned in Rule 114B of the Rules, which pertains to transactions, in relation to which, PAN is to be quoted in all documents for the purpose of Clause (C) of Sub-Section (5) of Section 139A of the Act. Therefore, to state that the partial stay granted by the Hon’ble Supreme Court would enure to the benefit of the petitioner even for filing income tax returns is a plea, which is not sustainable and is liable to be rejected.

14. For all the above reasons, this Court finds no grounds to entertain the writ petition and grant the relief sought for.

15. Accordingly, the writ petition is dismissed. No costs. Consequently, the above WMP is also dismissed.

E-filing of income tax returns register 17% growth post demonetisation

Sairam, Call for It Return, Firm register, GST Mo 9376642360

According to official figures, the e-filing of income tax returns (ITR) increased by 17%, while the increase in the category of individual files was more than 23%.

New Delhi: According to official data, the e-filing of Income Tax Returns (ITR) has increased by up to 17%, while the number of individual files has increased by more than 23%.

Year-by-year statistics identified by PTI show that a total of 31,61,63,320 e-returns were filed till October 31 last year (fiscal year 2016-17), this figure is 3,78,20,889 Increased up to This is October-end (fiscal year 2017-18). It shows the overall increase of 17.60% in the number of people who file online ITR online.

While supervising these activities, the officer of a senior income tax department credited the increase due to withdrawing two high-value notes of 500 rupees and 1 thousand rupees from the government after circulating on 8th November last year.

There has been an increase of 23.28% in the number of personal e-files in the data, which use the basic ITR-1 form to show taxman their income records. This year, the figure was 2,08,40,303, compared to 1,69,04,75 9 recorded online ITR-1 online, the figures show this year. ITR-1 or 'intuitive' files are called 'personal files' in the income tax's language.

Online filing of ITR-2A, whose income is from salary and other sources, has increased by 21.78%, while 28,82,189 returns have been filed in this category, whereas the same as last year In the period it was 23,66,687. year.
"It is possible due to increase in the figures, the tax department has asked the people to submit their returns so that it comes to making any transaction in view of the ban."

I T Department has already chosen for 20,572 tax returns for "detailed investigation" before and before the demonetisation income for suspected discrepancies, official sources said yesterday.