The government has introduced major changes through Finance Bill 2018 for broadening the tax base and makes it mandatory purchases of immovable properties and vehicles only by filers of income tax returns.
A fundamental step has been taken in order to curb acquisition of certain assets by persons who are outside the taxation regime.
A new provision in the form of section 227C has been introduced which overrides any other law for the time being in force.
Under this provision, a person who is not a ‘filer’ (a taxpayer whose name does not appear in the active taxpayers’ list issued by the Board or is not holder of a taxpayer‘s card) will not be entitled to processing of any application:
- For booking, registration or purchase of a newly manufactured vehicle or imported vehicle.
- From any authority responsible for registration, recording, attesting immovable property.
This appropriate step which has been undertaken to curb the parking of untaxed money in acquisition of new vehicles and immovable properties need to be examined in the context of Constitutional provisions in relation to the fundamental right in respect of acquisition of assets.
M. Adil Hussain
Future Chartered Accountants 