840. Removal of difficulties to Kisan Credit Cardholders by provisions of section 139(1)(v), first proviso
Circular No. 795 was issued by the Central Board of Direct Taxes on 1 September 2000. Its subject is 840. Removal of difficulties to Kisan Credit Cardholders by provisions of section 139(1)(v), first proviso.
These are guidelines issued under a power in the section itself. Where a section says the Board may issue guidelines and that they bind, the guidelines carry more weight than an ordinary circular — read the enabling words before deciding which kind this is.
Takes Kisan Credit Card holders out of the return-filing obligation in clause (v) of the first proviso to section 139(1), which required a person residing in a specified area who held a credit card, not being an add-on card, issued by any bank or institution at any time during the previous year to file a return by the due date. The Board's reasoning is that a Kisan Credit Card is unlike a normal credit card, being issued on the basis of the agriculturist's land holding; the clause is therefore to be applied to holders of credit cards other than Kisan Credit Cards.
It was represented to the Board that since agriculturists pay no tax on agricultural income, applying the clause to Kisan Credit Card holders would cause them avoidable inconvenience.
840. Removal of difficulties to Kisan Credit Cardholders by provisions of section 139(1)(v), first proviso
1. Under the existing provisions of clause (v) of the first proviso to sub-section (1) of section 139, a person not furnishing return under sub-section (1) and residing in specified areas and at any time during the previous year being the holder of a credit card, not being an add-on card, issued by any bank or institution, is required to furnish a return of his income during the previous year on or before the due date specified in the provision.
2. It has been represented to the Board that since agriculturists are not required to pay any tax on income arising from agricultural operations, the applicability of these provisions to the holders of Kisan Credit Card is likely to cause avoidable inconvenience to them.
3. The Board have considered the matter. It is hereby clarified that, unlike the normal credit card, the Kisan Credit Cards are issued based on the land holding of the agriculturists. The provisions explained in clause (v) of the first proviso to sub-section (1) of section 139 should, therefore, be made applicable to holders of credit cards other than Kisan Credit Cards.
Circular : No. 795, dated 1-9-2000.
In an old notice under section 142(1) or a prosecution or penalty for failure to file where the only trigger was holding a credit card.
Source: the Income Tax Department’s own published text — its page for this instrument.