Income Tax Return filing Fees may be introduced by Budget – 2022?

Income Tax Return filing Fees may be introduced by Budget – 2022?

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Income Tax Return filing Fees may be introduced by Budget – 2022?

 
Finance Minister Nirmala Sitharaman is seeking suggestions from stakeholders for its annual budget for 2022-23 to be presented in the parliament on 1ST Feb 2022. Every budget is a time to introspect and retrospect and explore the possibility of generating additional revenue so as to achieve its social economic objectives.
Another one in the pipeline could be the introduction of the “Income Tax Return filing Fees”
The present income tax return filing process is coupled with following statistics:
  1. Only 8,600 individuals have revealed that their annual income is above Rs 5 crore.
  2. About 42,800 people have declared taxable income of over Rs 1 crore annually.
  3. Further, four lakh people with income more than Rs 20 lakh.
  4. Only 2,200 doctors, chartered accountants, lawyers and other professionals have disclosed annual income of more than Rs 1 crore from their profession.
  5. 1% of the taxpayers account for 63% of the income taxes revenue contribution.
  6. In short, 99% of taxpayers are filing the return within minimal taxes.
  7. Only 1.46 crore individuals in India are liable to pay income tax, which is less than 1% of the population.
  8. Out of gross tax revenue of Rs 24,23,020 crore for 2020-21, the income tax was budgeted at Rs 6,38,000 crore which comes to 26.30% of total revenue receipts. Corporate tax of Rs 6,81,000 crore (28%), GST Rs 6,90,500 crore (28.5%), excise duties Rs 2,67,000 crore (11%), customs Rs 1,38,000 crore (5.70%), and service tax Rs 1,020 crore (0.045%).
In short, there are many taxpayers who are filing the income tax return but are not paying any income tax to the Government Treasury.
The non tax-paying population has also suddenly increased after the income tax Act which has incorporated section 87A. It may be noted that section 87A provides that the entire tax would be offered as rebate if the income doesn’t exceed Rs. 5 Lakh. Similarly, individuals /HUF are required to file the return even if they have loss in the business or under other source if they intend to have the benefit of carry forward of such loss.
As far as partnership firm, trusts and companies are concerned, they are required to file the income tax return compulsorily even if they don’t have taxable income or not required to pay the tax for the reason that their income is nil.
In short, there are numerous cases wherein the income tax return is filed but no tax is paid to the Government treasury.
Every return filed has an administrative cost like its acceptance, processing, communication, Updation, etc. And all this is done by the income tax department without a single rupee of collection from the taxpayer
To overcome this, the Government may plan to introduce the concept of “Return filing fees” wherein a minimum filing fees of RS. 1000/- for Individual taxpayers and Rs. 5000/- to Rs. 10,000/- for firms and companies may be introduced in the Budget-2022.
As a result of this, the Government may likely be able to generate consistent revenue of around 3000 Cr. This will also be used as a tool of ensuring quality data and return by the department as unwanted return filing would be curtailed after the return filing fee concept is introduced.

19 Comments

  1. January 19, 2022
    Nikhil

    If in case this policy introduced then from the date of implementation , we whole India will directly oppose the Government and we will not pay any single rupees of tax , THAT may be GST, INCOME TAX, EXCISE DUTY OR SERVICE TAX etc… Stop this nonsence Madam Nirmalasitaraman you are just a elected 5 years political representative not permanent MP, YOU ARE MP OF THE DEMOCRATIC COUNTRY, make some rules for betterment of people not for percentage political idiots even from your party also.

    Reply
  2. January 19, 2022
    We the tax payers and Voters

    This is just a non sense proposal. Has to be struck down before introduction.

    Reply
  3. January 19, 2022
    Amit Trivedi

    Rather Govt. Should impose Tax on all concerns who enjoys Govt. Subsidies, Govt. Officials in terms fringe Benfits

    Reply
  4. January 19, 2022
    Noorulla Shariff

    For partnership firm fee of Rs.5,000/- is not justified, it may be bring down to Rs.1,000/-

    Reply
  5. January 19, 2022
    Ramesh Jain

    its like shop keeper saying you have to pay extra for bill because we need to use people + good paper + good hardware
    above figure surprising that 99% logo ka bojha 1% log dhote hai un per aur bhoj dalo

    Reply
  6. January 19, 2022
    Prakash

    This is bound to happen as FM thinks that by giving exemption upto 500000/- FM has done a favor to tax payer. That is wrong let FM give some relief in minimum exemption limit and then tax the balance. FM has to see that since last so many years they have not increased the minimum exemption limit. Let her increase the limit and tax whole amount, then everyone will pay some tax.

    Reply
  7. January 19, 2022
    Atit Shah

    What’s d source of this ?

    Reply
  8. January 20, 2022
    Kumar Muthukrishnan

    Even people with no tax now dont file returns. Its a tragedy to penalise the law abiding citizens. Instead remove income tax fully and put expenditure tax . Pension of any sort to be fully exempted from income tax. Senior citizens not to be taxes if they receive pension.as ot ia a livelihood compensation or for their yester years contribution for the nation building. Lvying charge for filing tax? Real mockery.

    Reply
  9. January 20, 2022
    KAILASAM P

    Yes it is good option.

    Reply
  10. January 20, 2022
    S R Nagula

    Why not ! Should be introduced.!

    Reply
  11. January 20, 2022
    Venu Poddar

    good step

    Reply
  12. January 20, 2022
    Ajay Gupta

    Very poor thinking and I’ll conceived notion. On the one side, government wants to have more people to file return but if such fee is levied would it not discourage filing of returns. Further, the IT department is run from tax payers money and why shall he shell out money for being compliant in filing return.

    Reply
  13. January 20, 2022
    Parag Chheda

    Will the individual have to pay the ”Return Filing Fees” even if he is under income.

    Reply
  14. January 20, 2022
    Prakash

    Do government can implement banking transaction tax whereas tax is deducted on every receipt.

    Reply
  15. January 20, 2022
    Vinodh

    What is the point in taxing the same set of people who are already contributing to nation building by paying taxes or being honest in filing the returns, and on the other hand govt will be feeding lazy people for vote bank policies. They should bring in a tax for non filers of Income tax as small as 100 rs p.a will collect more revenue, atleast everyone will contribute towards nation building.

    Reply
  16. January 20, 2022
    Dr J S Dahiya

    Charging for services is ok but what happens for implementation of laws against law breakers particularly VVIPs for hate speeches of religion or cast or gender, the honest citizen is always put to the wall. Think of pension to honourable MP/ MLA in multiple with no tax while an employee serving for his whole life pay tax on his own contributions. Stop distributing free electricity, freebies etc to be in power, instead provide avenues for work and Make citizens self reliant.

    Reply
  17. January 21, 2022
    Nilesh Saiya

    Of course it should be levied, but Infosys should guarantee else they will have to refund double of what is paid.

    Further, augment number of filers. Income tax on agriculture income above 10 lakh be introduced. All exemptions/ deductions should be scrapped.

    Reply
  18. January 21, 2022
    Pravin

    It will be an unpleasant move for small Taxpayers, instead govt shall look for curtailment of their hi-fi expenses, must limit the frequent paygifts through pay-commission, it is burdening Treasury, so such nonsense steps Govt. is planning for.

    Reply
  19. January 23, 2022
    Pawan Lath

    I totally agree that all set of People specifically Agriculture Income( above 10 lac)should be Taxed as all black money is touted by Agriculture Income route . all should be definitely taxed…

    Reply

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