PART IV & PART V OF INCOME-TAX
RULES, 1976

Part IV : Statement regarding particulars of certain expenditure
outgoings during the previous year.

[See Notes A and B ]

Particulars Amount

Part - V : Statement of Assets held at the end of previous year

[ See Notes A and C ]

Note A: Where precise details are not available, the amount may be given by estimate.

Note B: Where expenditure is included under one item, it need not be included under any other item.

Note C: Where there are more than one previous year, the position as at the end of the previous year ending last may be stated.

Part IV enumerates and narrates requirements for the assessee to give 14 types of expenditure which he has incurred during the accounting year when filing his return under the provisions of the Income-Tax Act and Part V is also to be complied with by the assessee when filing Income-Tax Return and the assessees when filing the Income-Tax Return and the assessee has to give statement of assets held by him at the end of every 31st March. He has to give total assets which he is holding on 31st March of the accounting year.

Above provisions were added in the Income-Tax Rules, in 1976 but due to protest and agitation of employees, politicians and businessmen the said provision of Part IV and Part V were suspended every year. The Central Government used to suspend the said provisions every year at the time of filing of the Income-tax Returns and the said provisions were not implemented in any year and ultimately these provisions were deleted in the year 1981.

It is unfortunate that the Central Government had succumbed to the pressure of interested parties and did not implement the above provision. If the said provisions were implemented, India after 27 years would have white economy and would have controlled black money considerably.

If Part IV and V were implemented during the period of last 25 years, black money would have been controlled and people would not have black money. In U.S.A. due to collection of 92% of taxable income, people do not have any spare money to pay extra money to any officer or employee to get the work done. The citizen will fight for his right and the working system has been made so perfect that every man has to work diligently and discharge his duties, otherwise he can be thrown out.

If the Central Government introduces Part IV and Part V of the Rules, the controversy of declaration of assets by the contesting candidate to an election for Lok Sabha and Assembly Seats does not survive. The Central Government has not carried out the directions given by the Supreme Court with regard to declaration which the candidate has to file while contesting the election. The Central Government had to only amend the People's Representation Act, _____ incorporating the provisions that the candidate should have a Permanent Account Number and should produce his last return which will show from Part V the total assets which he has held during the end of the accounting year.

Introduction and implementation of Part IV and V can have far reaching effect in recovery of tax under Income-Tax Act. Implementation of the above Parts will also reduce the Income-Tax raids on industrialists, businessmen and officers. If any raid is made, the last return is only to be verified in order to find out the unaccounted money. The implementation of Part IV and V can considerably reduce corruption in Government Officers as every government and Corporation employee will have to disclose his assets held on the last accounting year and any excess of the assets declared can be considered unaccounted wealth beyond his known means of earning.