There are 13 crores assessees in populations of 24 crores in U.S.A. in India, we have got about 2 crores 30 lacs assessees in population of 100 crores. Out of 2 crores 30 lacs assessees number of Public Trusts file their Income-tax Return. The said Trusts do not contribute towards Income-tax as they are exempted under the Income-tax Act from payment of income-tax. There are number of Associations whose income is also exempted which are notified under Section 10 of the Income-tax Act. There are number of senior citizens who file their income-tax return but they do not pay any income-tax and contribute to the income-tax department as income of senior citizens is exempted upto income of Rs.1,86,000 per year in view of the exemptions under Section 80L, 88, 88B and other standard deductions and other deductions available under the Income-tax Act. There are number of women assessees below 65 years who also do not pay any income-tax in view of exemptions under sections 80L, 88 and 88C of the Income-tax Act. The Central Government reduced the tax from 55% to 30% but did not delete deductions and rebate and therefore number of assessees have remained at the most 2 crores and 30 lacs and out of them also, number of assessees file their returns but they do not contribute to the coffers of the Central Government.

The Government has made compulsory to file the Income-Tax Return Form 2-C for a person who satisfies any of the following six conditions laid down, viz. (i) in occupation of immovable property exceeding specified floor area, whether by way of ownership, tenancy or otherwise as specified in the Notification (ii) owner or lessee of motor vehicle, (iii) a credit card (iv) member of club (v) foreign travel (vi) Mobile Telephone.

Income-tax Form has to be filled in Form 2-C even if a person is not having income of more than Rs.50,000/-.

Due to above scheme, number of new assessee has increased but people are not coming forward to comply with the requirements of law as provided under the Income Act.

Suggestions :

Following are the suggestions to increase the number of assessees who can be covered within the ambit of tax payer.

1. There are 2 crores 79 lacs organized employees whose names and addresses are known to the Government and to the Companies and Firms who can file their returns. P. A. numbers can be straightway given to 2 crores 79 lacs employees who are well organized in getting their demands and who get living wage from their employers. On deletion of deduction viz. standard deduction and under Section 80L, 88, 88B and 88C, each one of them will have to file his Income-tax return. One crore 10 lacs employees file their returns.
2. Filing of Income-tax Return should be made compulsory for being a member of the following Associations:
   • Bar Council of Advocates and enrolled under the Bar Council Act constituted under the Advocates Act,
   • Medical Council of Medical Practitioners. Similarly all Doctors practicing under the Ayurvedic and Unani Systems of medicines, Homeopathic medicines.
   • Association of Chartered Accountants
   • Association of Civil / Structural Engineers
   • Association of Chartered Secretaries, etc. and all persons - business with fixed places.

Persons having P.A. number should be given special status facility so that every one will be inclined to file the income tax return.

The builders and the organizers should advertise for the Scheme to enroll only those members who have got their P.A. numbers and on booking of the persons' names they should notify the names and addressees and P.A. numbers of the persons who have booked their house / flat or plot in their Scheme.

For Banks, Post Offices or a person investing monies more than Rs.10,000 in Fixed Deposits should have P.A. numbers. Large number of agriculturists do not come within the tax net because their agricultural income is not taxable. On receiving their agricultural income, they invest their money in different investment modes and earn interest, who are liable to pay income-tax, but large number of them are not coming within the "tax net" on the ground that their agricultural income is not taxable. The Government should evolve such criteria regarding quantum of agricultural income, who have got to file Income-tax Return on their investments. The above suggestion is made on the basis that if exemptions as stated above are deleted every income will be taxable and practically every one will have to file the form as there will not be any exemption under the Income-tax Act.

In U.S.A. joint Income tax form of husband and spouse (wife) is allowed and one income tax return for income of husband and wife is filed. Additional deductions are given regarding children's education etc. In India such practice should be encouraged and deduction of education to certain fixed amount should be allowed in order that husband and wife may file their joint return of income-tax. The child is also allowed to file his own return.

Under the present law, it is difficult for the Department to club the income of minor and the wife under Section 64 of the Income Tax Act, If P.A. numbers are given to the wife and also minor children, the Department will have complete access with regard to the information of the assets of the family. The writer has suggested that Part IV and Part V of the Income-Tax Rules 1976, should be reintroduced which provide for an assessee to supply the details of major expenses during the accounting year which he has incurred and also list of total assets and new assets which he has acquired during the year. If all the members have got their P.A. numbers, including children, assessment will be easy and creation of black money can be easily controlled.

The writer has suggested Pension Scheme and Payment of Income-tax at different slabs. The citizen wants security in his old age when he is not capable to earn when he has got no job. Once the State provides pension scheme and the proportionate pension on payment of income-tax, every one will be inclined to pay income-tax, If the child is given P.A. number it will be easier for the Department to club the income.