Misinterpretation of Data on filing of I-T return by CAs by Newspapers: ICAI clarifies

ICAI has written letter dated 26.10.2018 to the editors of The Pioneer, The Tribune Trust, BBC Hindi and The Times of India in which it has highlighted the fact that they have misinterpreted the Data on direct tax collections related to filing of return by Chartered Accountants. It is being wrongly portrayed by these newspapers that only 1,03,049 out of nearly 2,80,000 chartered accountants have filed their returns.

ICAI clarified that The figure of 1,03,049 returns mentioned by the Income tax Department contains the data pertaining to Chartered Accountants who are in practice only i.e. having Full time COP / Part Time COP. The data with ICAI shows that in all there are 1,26,892 members who hold Full time/ Part time COP. This shows nearly 81 percent of the Chartered Accountants who are practising as professionals have filed their returns.

ICAI has further clarified that Apart from the above, 1,42,458 Chartered Accountants (who do not hold COP ) also file their returns and may have been included in the data pertaining to individuals having salary and /or other income.

ICAI also clarified that In all, out of 2,69,350 Chartered Accountants, 2,45,507 have filed their returns which is nearly 91% of the total Chartered Accountants. Amongst these, approximately 8000 Chartered Accountants are above the age of 70, who may or may not be filing returns, depending upon their income. Hence, the article doesn’t portray correct analysis and needs to be corrected.

Link of letters written by ICAI and Text of the same is as follows:-

A. News Item titled “Improving India’s tax compliance” published in The Pioneer dated October 26, 2018

THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF INDIA

(Set up by an Act of Parliament)

Misc/PRG/LE-7A/2018

October 26, 2018

The Editor

The Pioneer

CMYK Printech Ltd.

F-31, Sector-6, Noida

Uttar Pradesh — 201301

Dear Sir

Sub: News Item titled “Improving India’s tax compliance” published in The Pioneer dated October 26, 2018

We would like to draw your attention to the news item titled “Improving India’s tax compliance” published in The Pioneer dated October 26, 2018. The article states that “Data on direct tax collections and administration released early this week by the Central Board of Direct Taxes (CBDT)….Out of the 2.8 lakh chartered accountants, who advise companies and individuals on tax matters, only about one-third or one lakh paid taxes…”

Also, the news item refers to recent data released by the I-T department wherein it is portrayed that only 1 out of 3 Chartered Accountants have filed their returns.

Would like to bring to your notice that the Income Tax Return Statistics for the Assessment Year 2017-18 issued by Central Board of Direct Taxes recently have been presented on the basisttpf types of income, types of taxpayers etc. One such basis taken for analysis is “Type of Business” wherein the data has been presented in respect of various businesses like manufacturing industry, trade, professionals etc. In respect of professionals, the report mentions that 1,03,049 returns have been filed by Chartered Accountants.

The said data has been misinterpreted by the Publication. It is being portrayed that only 1,03,049 out of nearly 2,80,000 chartered accountants have filed their returns i.e. 1 out of 3 during the specified period.

Would like to bring the following facts to your notice for a clear understanding of the matter.

Chartered Accountants having Full time Certificate of Practice (COP) / Part Time COP/ No COP as on 1.4.2017 are given below:

Particulars NO, of Chartered Accountants
Total Members 2,69,350
Members having Full Time COP/ Part Time COP  (Professionals) 1,26,892
Members not in Practice (Salaried) 1,42,458

The figure of 1,03,049 returns mentioned by the Income tax Department contains the data pertaining to Chartered Accountants who are in practice only i.e. having Full time COP / Part Time COP. The data with ICAI shows that in all there are 1,26,892 members who hold Full time/ Part time COP. This shows nearly 81 percent of the Chartered Accountants who are practising as professionals have filed their returns.

Apart from the above, 1,42,458 Chartered Accountants (who do not hold COP ) also file their returns and may have been included in the data pertaining to individuals having salary and /or other income

In all, out of 2,69,350 Chartered Accountants, 2,45,507 have filed their returns which is nearly 91% of the total Chartered Accountants. Amongst these, approximately 8000 Chartered Accountants are above the age of 70, who may or may not be filing returns, depending upon their income. Hence the article doesn’t portray correct analysis and needs to be corrected.

It is quite unfortunate that a reputed National newspaper like The Pioneer has published the story without verifying the facts from ICAI and published such an adverse report in a manner which has caused immense damage to the credentials of CA profession. In such cases, the concerned correspondent ought to have verified the facts with the Institute before issuing any statement

In view of the above, we request you to take appropriate steps by publishing suitable article prominently in your newspaper immediately stating the correct facts so as to clear the doubts in the minds of readers and all stakeholders. We are sure that as responsible news daily, you will carry the facts forwarded by ICAI.

Thanking you,

Your faithfully,

(V. Sagar)

Download Official Copy of Letter to Editor, The Pioneer dated Oct 26, 2018


B. News Item titled “The income tax saga” published in The Tribune dated October 24, 2018

THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF INDIA

(Set up by an Act of Parliament)

Misc/PRG/LE-7B/2018

October 26, 2018

The Editor

The Tribune Trust

Sector 29-C

Chandigarh (UT)-160030

Dear Sir

Sub: News Item titled “The income tax saga” published in The Tribune dated October 24, 2018

We would like to draw your attention to the news item titled “The income tax saga” published in The Tribune dated October 24, 2018. The article states that “…Salaried people continue to pay tax even before they receive their pay cheques, but the same is not true of professionals such as doctors, chartered accountants and lawyers…” Further, the article states that .. All well-paid doctors, chartered accountants, advocates, private hospitals and institutes, and rich farmers must be brought into the tax net, so that the state has enough resources to transform the lives of the poor.

Also, the news item refers to recent data released by Tax Department. Would like to bring to your notice that the Income Tax Return Statistics for the Assessment Year 2017-18 issued by Central Board of Direct Taxes recently have been presented on the basis of types of income, types of taxpayers etc. One such basis taken for analysis is “Type of Business” wherein the data has been presented in respect of various businesses like manufacturing industry, trade, professionals etc. In respect of professiohals, the report mentions that 1,03,049 returns have been filed by Chartered Accountants.

The said data has been misinterpreted by the Publication. It is being portrayed that only 1,03,049 out of nearly 2,80,000 chartered accountants have filed their returns.

Would like to bring the following facts to your notice for a clear understanding of the matter.

Chartered Accountants having Full time Certificate of Practice (COP) / Part Time COP/ No COP as on 1.4.2017 are given below:

Particulars No. of Chartered Accountants
Total Members 2,69,350
Members having Full Time COP/Part Time COP  (Professionals) 1,26,892
Members not in Practice (Salaried) 1,42,458

The figure of 1,03,049 returns mentioned by the Income tax Department contains the data pertaining to Chartered Accountants who are in practice only i.e. having Full time COP / Part Time COP. The data with ICAI shows that in all there are 1,26,892 members who hold Full time/ Part time COP. This shows nearly 81 percent of the Chartered Accountants who are practising as professionals have filed their returns.

Apart from the above, 1,42,458 Chartered Accountants (who do not hold COP ) also file their returns and may have been included in the data pertaining to individuals having salary and /or other income

In all, out of 2,69,350 Chartered Accountants, 2,45,507 have filed their returns which is nearly 91% of the total Chartered Accountants. Amongst these, approximately 8000 Chartered Accountants are above the age of 70, who may or may not be filing returns, depending upon their income. Hence, the article doesn’t portray correct analysis and needs to be corrected.

It is quite unfortunate that a reputed National newspaper like The Tribune has published the story without verifying the facts from ICAI and published such an adverse report in a manner which has caused immense damage to the credentials of CA profession. In such cases, the concerned correspondent ought to have verified the facts with the Institute before issuing any statement

In view of the above, we request you to take appropriate steps by publishing suitable article prominently in your newspaper immediately stating the correct facts so as to clear the doubts in the minds of readers and all stakeholders. We are sure that as responsible news daily, you will carry the facts forwarded by ICAI.

Thanking you,

Yours faithfully,

(V. Sagar)

Download Official Copy of Letter to Editor, The Tribune dated Oct 26, 2018


C. News Item titled “Number of taxpayers up, but salaried still bear the brunt” published in Times of India dated October 23, 2018

THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF INDIA

(Set up by an Act of Parliament)

Misc/PRG/LE-7/2018 October 26, 2018

The Editor

The Times of India

7, Bahadur Shah Zafar Marg

New Delhi – 110002

Dear Sir

Sub: News Item titled “Number of taxpayers up, but salaried still bear the brunt” published in Times of India dated October 23, 2018

We would like to draw your attention to the news item titled “Number of taxpayers up, but salaried still bear the brunt” (as attached) published in Times of India dated October 23, 2018. The article states that “In the case of Chartered Accountants, who advise individuals and companies on tax matters, one in three paid income tax..”

Also, the news item presents recent data released by the I-T department wherein it is portrayed that only 1 out of 3 Chartered Accountants have filed their returns.

Would like to bring to your notice that the Income Tax Return Statistics for the Assessment Year 2017-18 issued by Central Board of Direct Taxes recently have been presented on the basis of types of income, types of taxpayers etc. One such basis taken for analysis is “Type of Business” wherein the data has been presented in respect of various businesses like manufacturing industry, trade, professionals etc. In respect of professionals, the report mentions that 1,03,049 returns have been filed by Chartered Accountants.

The said data has been misinterpreted by the Publication. It is being portrayed that only 1,03,049 out of nearly 2,80,000 chartered accountants have filed their returns i.e. 1 out of 3 during the specified period.

Would like to bring the following facts to your notice for a clear understanding of the matter.

Chartered Accountants having Full time Certificate of Practice (COP) / Part Time COP/ No COP as on 1.4.2017 are given below:

Particulars No. of Chartered Accountants
Total Members 2,69,350
Members having Full Time ‘COP/Part Time COP  (Professionals) 1,26,892
Members not in Practice (Salaried) 1,42,458

The figure of 1,03,049 returns mentioned by the Income tax Department contains the data pertaining to Chartered Accountants who are in practice only i.e. having Full time COP / Part Time COP. The data with ICAI shows that in all there are 1,26,892 members who hold Full time/ Part time COP. This shows nearly 81 percent of the Chartered Accountants who are practising as professionals have filed their returns.

Apart from the above, 1,42,458 Chartered Accountants (who do not hold COP ) also file their returns and may have been included in the data pertaining to individuals having salary and /or other income

In all, out of 2,69,350 Chartered Accountants, 2,45,507 have filed their returns which is nearly 91% of the total Chartered Accountants. Amongst these, approximately 8000 Chartered Accountants are above the age of 70, who may or may not be filing returns, depending upon their income. Hence the article doesn’t portray correct analysis and needs to be corrected.

It is quite unfortunate that a reputed National newspaper like Times of India has published the story without verifying the facts from ICAI and published such an adverse report in a manner which has caused immense damage to the credentials of CA profession. In such cases, the concerned correspondent ought to have verified the facts with the Institute before issuing any statement

In view of the above, we request you to take appropriate steps by publishing suitable article prominently in your newspaper immediately stating the correct facts so as to clear the doubts in the minds of readers and all stakeholders. We are sure that as responsible news daily, you will carry the facts forwarded by ICAI.

Thanking you,

Your faithfully,

(V. Sagar)

 

Download Official Copy of Letter to Editor, The Times of India dated Oct 26, 2018

D. Clarification published in response to Letter to Editor – The Tribune dated Nov. 1, 2018

E. Clarification published in response to Letter to Editor – The Times of India dated Oct. 31, 2018

F. News Item titled “Desh ke Adhe Doctor, Vakeel, CA koi Tax nahin chukate” published on BBC(Hindi) online portal dated October 29, 2018

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

Misc/PRG/LE-7C/2018   October 31, 2018

The Editor
BBC Hindi
Hindustan Times House
5th Floor, K G Marg
New Delhi – 110001

Dear Sir

Sub: News Item titled “Desh ke Adhe Doctor, Vakeel, CA koi Tax nahin chukate” published on BBC(Hindi) online portal dated October 29, 2018

We would like to draw your attention to the news item titled “Desh ke Adhe Doctor, Vakeel, CA koi Tax nahin chukate” published on BBC(Hindi) online portal dated October 29, 2018. The article states that “Iss Report mein kar bhugtaan karne wale Chartered Accountants and vakeelon ke kam sankhaya ka bhi vishesh zikar kiya gaya hai. Iss soochi mein Chartere Accountants / Auditors ki sankhaya kewal 1,03,049 darz hai, jabki Bharat mein inki sankhaya issse lagbhag doguni hai”.

Also, the news item refers to recent data released by the I-T department. Would like to bring to your notice that the Income Tax Return Statistics for the Assessment Year 2017-18 issued by Central Board of Direct Taxes recently have been presented on the basis of types of income, types of taxpayers etc. One such basis taken for analysis is “Type of Business” wherein the data has been presented in respect of various businesses like manufacturing industry, trade, professionals etc.

In respect of professionals, the report mentions that 1,03,049 returns have been filed by Chartered Accountants. The said data has been misinterpreted by BBC (Hindi) web portal.

Would like to bring the following facts to your notice for a clear understanding of the matter.

Chartered Accountants having Full time Certificate of Practice (COP) / Part Time COP/ No COP as on 1.4.2017 are given below:

Particulars No. of Chartered Accountants
Total Members 2,69,350
Members having full time COP Part Time COP (Professionals) 1,26,892
Members not in Practice (Salaried) 1,42,458

The figure of 1,03,049 returns mentioned by the Income Tax Department contains the data pertaining to Chartered Accountants who are in practice only i.e. having Full time COP / Part Time COP. The data with ICAI shows that in all there are 1,26,892 members who hold Full time/ Part time COP. This shows nearly 81 percent of the Chartered Accountants who are practising as professionals have filed their returns.

Apart from the above, 1,42,458 Chartered Accountants (who do not hold COP ) also file their returns and may have been included in the data pertaining to individuals having salary and /or other income

In all, out of 2,69,350 Chartered Accountants, 2,45,507 have filed their returns which is nearly 91% of the total Chartered Accountants. Amongst these, approximately 8000 Chartered Accountants are above the age of 70, who may or may not be filing returns, depending upon their income. Hence the article doesn’t portray correct analysis and needs to be corrected.

It is quite unfortunate that a reputed web portal like British Broadcasting Corporation (BBC), Hindi has published the story without verifying the facts from ICAI and published such an adverse report in a manner which has caused immense damage to the credentials of CA profession. In such cases, the concerned correspondent ought to have verified the facts with the Institute before issuing any statement.

In view of the above, we request you to take appropriate steps by publishing suitable article prominently in your newspaper immediately stating the correct facts so as to clear the doubts in the minds of readers and all stakeholders. We are sure that as responsible news daily, yo’ will carry the facts forwarded by CAI.

Thanking you,

Yours faithfully
(V. Sagar)

Download Official Copy of Letter to Editor, BBC Hindi dated Oct 31, 2018

(Republished with amendments)

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7 responses to “Misinterpretation of Data on filing of I-T return by CAs”

  1. VED PRAKASH BANSAL BANSAL says:

    We should not make discremation among all profeesional by putting data certain professional and leaving other professional brother also.so better to post data of all the profession.

  2. Sukanta says:

    All justifications giving by ICAI are bogus. No control on his figure of qualified CA, Out of that how many are in practice, how many are salaries, how many are retired and no practice, how many died and how many are in abroad working , how many are fake certificate carrying etc.I dnot believe on CA report. Because there are 11 lacs registered companies approx. , if consider atleast one CA in a company, then qualified would be 11 lacs, plus there are 1.5 lacs firms, some would have retied, some would have died, some would have in abroad etc. In that sense 15 lacs minimum CA qualified but actual ICAI is claiming very less.As per institute website it is appearing memberships number more than 5 lacs. If assume that Institute fig is correct , then difference numbers are fake certificates which need to proper investigation by CBI/ED and other Govt Agencies. I d’nt understand why ICAI is hiding the fact.One proper investigation should carry out for clarity and truth should come out. Pls clarify with fig and facts.

  3. Shastry V B says:

    see 1st two lines of the above::
    ICAI has written letter dated 26.12.2018

    ?????

  4. Samir says:

    In your Post you have mention “ICAI has written letter dated 26.12.2018 to the editors” – please correct the date as 26.10.2018.

  5. Neeraj Jain says:

    Please Correct Date
    ICAI has written letter dated 26.12.2018

  6. suresh babu says:

    ICAI has written letter dated 26.12.2018. We are in October only. How can be the letter dated 26-12-2018. Check the date

  7. suresh babu says:

    ICAI has written letter dated 26.12.2018
    we are still in October. Pl check the date of the letter

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