Keep Cell Phones Out Of 1/6 Scheme: Trai

[Arun 795]

Sunday, 09 May , 2004, 08:51

The Telecom Regulatory Authority of India (TRAI) has asked the Government to remove mobile phones from the `1/6 scheme,' which makes it mandatory for all mobile subscribers to file income-tax returns.

TRAI feels that if mobile phone subscribers are exempted from filing their returns, it will give a further impetus to the sector, which has already logged a 160 per cent growth in the last one year.

The TRAI Chairman, Pradip Baijal, has written a letter to Nripendra Misra, Secretary, Department of Telecommunications, pointing out that the mobile subscriber base increased from 13 million in March 2003 to 33.58 million subscribers in March 2004, thanks to greater affordability.

According to the latest TRAI figures, by the end of April 2004, the total number of mobile users in the country had reached about 35 million. It is further expected to rise to 100 million by December 2005.

"Owing to technological developments and a reduction in costs, the mobile phone has changed from being a product for the elite to that for a common man. TRAI has received representations from the service providers saying that the affordability of the service has attracted more and more low-end users. We are of the view that 1/6 Income-Tax criteria should exclude phones as that would facilitate growth in the sector," the letter says.

[emmi 3]

Its time they did that be coz , everyone from students to the machili wallah in the baazar own cell phone(And most of them reliance that too lg rd2030 :'( ) . Ppl with no or very less source of income are beginning to own cell phones.Thanks to reliance cell phones have lost the rich mans thing tag.