SURAT, June 24: City's leading chartered accountant Rupin Patchigar has urged the government to exempt telephone-holders from filing income tax returns as ``telephone is not a luxury item, but a necessity.''In a letter to the Union finance minister, he pointed out that the telephone - one of the six criteria announced by the government - should not be a criteria for filing the income tax return.While congratulating the BJP-led government for its ``balancing act in the maiden budget'', Patchigar has drawn the minister's attention to some of the provisions in the budget, which, he says, might create hardship to the people at large.Referring to the `Kar Vivad Samadhan Scheme', he said while the purpose of this scheme was to reduce litigation, its framework suggested that the thrust seemed more on recovering existing tax arrears.According to the scheme, an assessee, who has filed an appeal with the CIT (Appeal) or Tribunal and the litigation is pending, can apply for the Samadhan if he has not paid tax or the income is in dispute. However, an assessee who has already paid the tax and still the matter is pending in appeal is barred from getting the benefit of Samadhan scheme. While suggesting that the Samadhan scheme be made available to all, whether the tax payable is outstanding or not on March 31, 1998, Patchigar stressed that if this was not rectified, the scheme itself would lead to litigation.As per the proposal of Budget '98, a person will have to quote his Permanent Account Number (PAN) and General Index Registration Number (GIRN) in all documents pertaining to prescribed transaction, he said, quoting the budget.But pointed out that a person, who doesn't have taxable income, will not get any PAN or GIRN and in this case if the bank doesn't allow him to open an account the entire business will be in cash, which will increase black money in the economy.
