Taxing issue: Hajis raise concerns over ITR guidelines

Last date extended for Haj applications
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Last date extended for Haj applications

Highlights

  • Hajis flying to Saudi Arabia whose expenditure exceeds `2 lakh may fall under this category and may face hardships upon return from pilgrimage
  • Failing to comply with income tax norms would make them ‘defaulter’ and liable to unnecessary litigations apart from several fines

Hyderabad: Following the new guidelines issued by the Centre on Income Tax Returns (ITR), there is an uproar and confusion over the issue on whether the Haj pilgrims come under the ambit. Experts believe that the Hajis flying to Saudi Arabia whose expenditure exceeds Rs 2 lakh may fall under this category as no clear guidelines are mentioned and may face hardships upon return from pilgrimage.

The Union government introduced a provision that mandates the foreign traveler to file ITR if his expenses exceed Rs 2 lakh in Financial Year (April 1 to March 31), even if his income is below exemption limits. Experts feel that given the fact that lakhs of Muslims perform Haj, which requires travelling to Saudi Arabia and costs more than Rs 2 lakh, then by the application of law they fall under this category. Moreover, failing to comply would make them 'defaulter' and liable to unnecessary litigations apart from several fines.

According to G K Malik & Associates (Chartered Accountants), an exemption was added by the government but only to a neighbouring country for religious and other purposes. However, this provision fails to the Kingdom of Saudi Arabia (KSA) as it does not qualify as a neighbouring country. This benefits all communities expect Muslims since their religious place falls outside the ambit of the 'neigbouring country'. "23 years ago, in 1997, the Union government introduced the Law of Foreign Travel Expenditure but exempted Hajis travelling to Saudi Arabia from filing ITR. However, when this law was reintroduced by the current government, it failed to provide an exemption," explained, CA Karishma, who on Wednesday represented the matter to Telangana State Home Minister Mohammed Mahmood Ali.

Earlier, the issue was also raised by Maulana Khalid Rashid Firangi Mahali, Head of Islamic Centre of India based in Lucknow. He demanded that the government consider Haj pilgrims and wrote to the Union government emphasising that Muslims save money their enter life to perform Haj and, hence, cannot afford such an ordeal. Islamic Centre's three demands include searching for alternative arrangements as the pilgrimage is getting expensive each year, exemption from GST and other taxes and abolishment of filing ITR.



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