INCOME TAX

Removal of difficulties to Kisan Credit Cardholders by provisions of section 139(1)(v), first proviso

Circular : No. 795, dated 1-9-2000.

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.