Tax dept takes note of low incomewallahs in Jamshedpur
September, 18th 2006
The income-tax department is worried over the low incidence of returns filed in Jamshedpur, an industrial hub of Jharkhand. The IT department is especially disturbed at the low number of returns being filed of income exceeding Rs 10 lakh annually.
According to K Sarkar, commissioner, income tax, Jamshedpur circle: What I saw from facts and figures was somehow disturbing. Sarkar said at a chamber meeting recently that the Jamshedpur circle of the department had a little over 1.35 lakh taxpayers, out of which only 462 had shown income above Rs 10 lakh.
If you see the total number of taxpayers in Jamshedpur, the number of taxpayers having income of more than Rs 10 lakh is somewhat disproportionate.
Sarkar added that the disproportion was more glaring when one considered that 61 of the assessees were corporates while 214 were individuals had only salaried income and either did not have or had only nominal income from other sources. The number of returns of income exceeding Rs 10 lakh is very low, said Sarkar. With an economic boom on, the department expected more number of people in the Rs 10-lakh bracket.
As per the 2001 Census, the city had a population of a little over 11 lakh. In a place like Jamshedpur, where economic activity has a very sound base, the number is definitely inadequate, he said.
Requesting taxpayers to comply with filing of returns as the tax rates are moderate at this moment, Sarkar said even though a majority of the returns by individuals had been filed by July 31, the audited returns category, including manufacturing units, should file returns by October 31, after ensuring that tax due was paid.
The IT department had particularly noticed a disturbing trend regarding claims made by salaried taxpayers under Section 24(b) of the IT Act related to interest paid on housing loans, as well as claims under Section 80G. Sarkar advised salaried taxpayers to ensure that wherever a claim had been made, particularly under these two Sections, the claim was legal and in order. The caution note was particularly given as this year, unlike in the previous years, under the residual clause, the department, with the approval of the chief commissioner, has been empowered to take up cases for scrutiny, even in case of the salaried class.
Though overall the IT returns figure for Jamshedpur was on the lower side, probably the number of returns filed is more this year by a much higher margin than what it was last year.
We would be able to get a clear picture only after October 31 when (the figure for) both audit and non-audit cases would be available, Sarkar added.