The Madurai Bench of the Madras High Court has issued a notice to the Government after receiving a petition contending that when the government had fixed that families earning a gross annual income of less than ₹ 8 lakh could avail benefit under the economically weaker sections (EWS) reservation, there was no rationality behind the government collecting income tax from individuals having annual income less than ₹ 8 lakh.
A Division Bench of Justices R. Mahadevan and J. Sathya Narayana Prasad ordered notice to the Centre on the petition filed by A. Kunnur Seenivasan of Srivilli puthur in Virudhunagar district. Mr. Seenivasan, 82-year-old, said that he was serving as a member of the Assets Protection Council of DMK. He contended that the government collecting tax from an individual earning ₹2.50 lakh annual income was a clear violation of fundamental rights.
The petitioner, KunnurSeenivasan, an agriculturist and a member of Asset Protection Council (DMK Party) approached the court to set aside the First Schedule, Part-I, paragraph-A of the Finance Act, 2022 fixing the rate of Income Tax. As per the Schedule, any person whose total income does not exceed Rs. 2,50,000 is exempted from payment of tax.
According to the petitioner, when the Government decided to classify a particular sections are groups of people as Economically Weaker Section for getting reservation by fixing gross income, the very same yardstick should be applied for all other sections of people and it shall not collect income tax from all Economically Weaker Section of individual. Hence, the First Schedule, Part-I, paragraph-A of the Finance Act, 2022, [No.6 of 2022], has to be declared as ultra-vires and against the Article 14, 15, 16, 21 and 265 of the Constitution of India.
“By the impugned First Schedule, Part-I, paragraph-A of the Finance Act, 2022, [No.6 of 2022], the respondents are permitted to collect income tax from an individual having income among Rs.2,50,000/- per annum and it would leads to maintain economic inequality among the citizen, because a section of people having income below Rs.7,99,999/-, per annum or eligible to get reservation and Economically Weaker Section, but the others are not eligible to get reservation on the basis of income criteria. Hence, it is clear violation of the fundamental rights”, the plea states.
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