Chandigarh (Gurpreet, Wishaw Warta)- The issue of exemption to Punjab MLAs from payment of Income Tax on their salaries and allowances came up for hearing today before a Division Bench of Hon’ble Justices Rajiv Sharma and Justice H.S. Sidhu in a PIL filed by advocate H.C. Arora. The petitioner has stated in his PIL that as per a letter written by Finance Minister, Manpreet Singh to CM, Punjab, which has been reported in News papers of 22.11.2019, State of Punjab is in a financial crunch, and is not in a position even to pay salaries to its employees. On the other hand under section 3-AA of the Punjab Legislative Assembly (Salaries and allowances of Members) Amendment Act, 2004 , “ “The salaries and allowances payable to the members under this Act, shall be exclusive of the income tax, payable in respect thereof under any law relating to income tax for the time being in force, and such tax shall be paid by the State Government.”
The petitioner has also stated that as per information conveyed to the press by the office of Chief Minister Punjab, the annual burden of total income tax payable on the salaries of MLAs is Rs. 10.72 Cores. He has stated that earlier Ministers and Deputy Ministers were also exempt from requirement of paying income tax on their salaries and allowances, but through appropriate amendments in relevant legislations, on 27.4.2018, the provision for giving them such exemption has been withdrawn. That being so, the continuance of such exemption to MLAs, beyond 27.4.2018 is totally arbitrary and unjustified. The provisions of Section 3-AA (Supra) therefore, are liable to be quashed.
To a pointed question, put to him by the Bench, as to how he is aggrieved from exemption granted to MLAs from payment of income tax, petitioner stated” Every tax payer is aggrieved. I am myself highly aggrieved, as I am annually paying income tax of more than Rs.10l lakh. Tax Payers are paying income tax through their nose.”
The Bench however, adjourned the PIL to 5.12.2019 to enable the petitioner to argue on the issue as to whether State Assembly is competent to enact a law for granting exemption to MLAs from requirement to pay income tax.
