The unique branded welfare scheme ‘Dalit Bandhu’ by Telangana Chief Minister KCR is now on income tax radar. The unplanned project will cost much to the beneficiary and create hassles to avail this opportunity.
Surprisingly, the much-hyped Dalit Bandhu scheme launched at Vasalamarri village in Yadadri Bhongir district amidst much fanfare by the Chief Minister has led to a sort of festive atmosphere in the village. People are waiting for the transfer of Rs 10 lakh per family into their bank accounts.
However, this much-hyped scheme is now under IT lens. The IT department is examining if this scheme would add more people to the tax net. Sources in the department said that they are trying to assess if the beneficiaries will have to file IT returns or not.
They feel that as per the existing IT Act, the rebate of tax is available for those whose income does not exceed Rs 5 lakh per year. This rebate is available under Section 87A of the Act. Top officials of the Income Tax department told #KhabarLive that this scheme being the first of its kind in the country and promises money to be given to each family which would be above IT limit it may fall under the category of Income Tax net.
There is no Central Act to exempt the beneficiaries of the welfare schemes under which they get huge monitory benefit from the tax net. Generally, the welfare scheme benefits launched by the State and Union governments do not exceed Rs 5 lakh. Moreover, the CM said that this benefit would be over and above the existing benefits like pensions, etc, which they are enjoying now.
If this scheme falls under the tax net, then they may even become ineligible for certain other welfare schemes like white ration card, etc.
The sources point out that to deposit more than Rs 49,000 in bank, one must furnish PAN details. If the TS government deposits Rs 10 lakh in each beneficiary’s account without PAN, it could create new legal problems.
The IT officials asserted the State government should seek tax exemption to deposit Rs 10 lakh into the beneficiary account from the Union government. #KhabarLive #hydnews