A scheme to recognise the important contribution of taxpayers to the national cause

In his budget speech delivered on 01.06.1998, Finance Minister had explained the rationale of SAMMAN in following words:

" Tax payers all over the world have a sense of pride in discharging their legitimate dues to the government and the society recogniss the important contribution they are making in enabling the State to discharge its responsibilities. In this country, regrettably, the culture of pride by honest tax payer and a social recognition of his important role has yet to evolve. We must make a change in this mindset. Towards this objective, I propose to introduce a Scheme called ‘SAMMAN’ to demonstrate the society’s recognition of their important contribution to the national cause. The details of the facilities and recognition to be conferred on the tax payers and PAN holders would be separately announced."

Formulated on the basis of above objective, the Scheme is outlined below:-

1. Persons eligible to be given Samman :
   1. All individual taxpayers falling in each of the three categories, i.e., Business, Profession and Salary having a declared income of Rs. 20 lacs or more in four out of five immediately proceeding years shall receive Samman at the national level.
   2. An individual tax-payer falling in each of the three categories as above and who has declared highest income for the immediately proceedings year , in the region of Chief Commissioner /Commissioner shall get Samman at regional level in all cases. In other words, there will be three awardees in each region. However, if there is no office of Chief Commissioner/Commissioner in a place or district but there is an income tax range the tax payers to be awarded Samman shall be selected at the level of the range. Similarly, if there is only a Deputy Commissioner/Assisstant Commissioner/ Income Tax Officer in a district or a smaller town, , it will be at the level. The basic idea is that the tax payers to be awarded Samman should not be from metropolitan cities or bigger cities only. Every district or town where there is an income tax office should have a tax payer who has been awarded Samman. If there are more than one range or officers in a place, the assessees of all the officers located in that place or district should be considered together. If any assessee becomes eligible to be honoured at higher level his place should be taken by next eligible tax payers.
   3. The top tax - payer in the country , one in each of the three categories (business , profession and salary), shall be honoured with ‘ Aaykar Ratana’ at national level.
2. Persons barred from getting Samman:
   1. Persons against whom penalty for concealment of income has been imposed in any of the proceeding five years and such penalty has not been cancelled by any appellate authority.
   2. Person who have been searched in last five year.
   3. Persons who have defaulted in timely submission of returns or payment of tax in any of the proceedings five years.
   4. Person who have been granted waiver of interest of penalty by the Commissioner or the Settlement Commission.
   5. Persons who have not obtained or duly applied for PAN.
3. Modality of giving Samman Patras/Cards:
   Samman is to be given in the form of the Samman Patra at the district and regional level. At the national level, Samman card would be given in the form of a laminated visiting card giving the particulars of the card holder. The format for the Samman Patra/Samman Card shall be as under:-

At the regional level, the Patra shall be signed by Chief Commissioner/Commissioner/Additional Commissioner (Range). Samman Patra/Card holders are to be facilitated in public functions at the national or regional level with their consent. Wide publicity is to be given in Press and Media. The names of such tax payer with their consent are to be displayed in Income Tax Offices. However, if any tax payer does not want to be so identified, he may be given Samman Patra/ Card by post.

Incentives to be provided to Samman Patra /Card holders:

1. Income Tax Clearance Certificate for registration of properties, obtaining of contracts or for going abroad shall be allowed to Samman Patra/Card holders along with a Samman Card / Patra for a period of three years.
2. The assessment of Samman Patra / Card holders may not be subjected to scrutiny for a period of three years except under very special circumstances and that too after obtaining the prior approval of the Commissioner/ Chief Commissioner.
3. All applications for rectification of mistake /appeal effects, etc. should be disposed of on a priority within 15 days of receipt of their application. Refunds should be issued in their cases promptly on the filing of the return.
4. Tax payers’ representatives in Tax Advisory Committees at the level of administrative commissioners should be selected from Samman Card holders. Quarterly meeting of such committees should be held.

Recognition of Tax payers:

The best way of recognise the vast majority of tax payers is to create a taxpayer - friendly atmosphere in the income tax offices all over the country. The thrust, therefore, shall be to improve the conditions in the offices by way of creating proper infrastructure and providing certain basic facilities to the taxpayers. These shall include proper waiting rooms, facilities of library, telephone, photocopying , etc. against reasonable fee. A web - site is to be created at national and regional level on the internet with a view to providing assistance to the taxpayers in all matters relating to law and procedure. Every major Income Tax Office in the country shall have a " Tax Assistance Centre " where queries from taxpayer by fax, E - mail , telephone or any other mode would be properly attended to by an officer not below the rank of Assistant Commissioner /Income Tax Officer. In the suburbs of larger cities and in smaller towns, service centres should be opened for distributing and receiving return to/from the taxpayers of the locality. These service centres will also receive miscellaneous applications, letters and challans along with cheques for payment of taxes . The assessee may not then be required to go to the bank to make payment of taxes.