Pintu Mahra, a boatman from Arail village on the banks of Triveni in Prayagraj, has been in news since the Mahakumbh got over because of his sudden fortune. Last week, Uttar Pradesh Chief Minister Yogi Adityanath claimed that a boatman's family earned Rs 30 crore in just 45 days during the congregation in Prayagraj from January 13 to February 26.
Addressing the UP State Legislative Assembly, CM Yogi said, "A boatman's family, who owned 130 boats, earned a total of Rs 30 crore in just 45 days during the Mahakumbh. This means each boat earned Rs 23 lakh over the 45 days, which translates to about Rs 50,000-52,000 per day."
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As per the Chief Minister, the boatman possessed a total of 130 boats, with each boat generating an average profit of Rs 23 lakh during the significant religious gathering. Pintu disclosed that he and his family amassed a remarkable sum of Rs 30 crore in just 45 days through the operation of a fleet of boats during Mahakumbh. The earnings, which previously amounted to Rs 1,000 to Rs 2,000 per day per boat, surged to Rs 50,000 to Rs 52,000 daily, showcasing a remarkable improvement.
In response to this development, various social media platforms are abuzz with reports that the boatman has received a tax notice from the Income Tax Department, demanding Rs 12.8 crore in taxes under Section 4 & 68 of the Income Tax Act, 1961.
A K Mandhan, a financial planner and SEBI registered research analyst, pointed out during the Mahakumbh Mela, a boatman from Prayagraj, who had spent his entire life rowing boats and earning a modest income of Rs 500 a day, experienced a dramatic shift in his financial circumstances. He unexpectedly generated a substantial Rs 30 crore during the event. This sudden wealth came as a surprise to Mahra, who now faces the daunting task of paying Rs 12.8 crore in taxes within a year.
He added that the realisation of losing a significant portion of his earnings to taxes has added to Mahra's distress, as he navigates this new financial chapter in his life.
"A boatman from Prayagraj, who spent his entire life rowing boats and earning barely ₹500 a day, suddenly found himself making a massive ₹30 crore during the Mahakumbh Mela. The huge crowd of pilgrims created an unexpected demand, and the boatman raised his boat fare from ₹100 to ₹1,000 per ride. Within a few months, his total earning reached ₹30 crore, something he never imagined in his life. But what happened next was shocking! The Income Tax Department issued him a tax notice of ₹12.8 crore under Section 4 & 68 of the Income Tax Act, 1961. A man who never even knew about tax slabs or filing returns was now stuck with a massive tax bill like a high-level businessman. His fortune turned into a financial nightmare overnight. Imagine a person who once struggled to make ₹15,000 a month now has to pay ₹12.8 crore in taxes within a year. For him, making such huge money was already a shock, and now losing a major chunk of it as tax was even more painful," Mandhan said.
He raised a few questions on the issue:
> Should there be a separate tax structure for such unplanned high-income earners like this boatman? > Or he should be taxed at par with others. Should the system work on a simple rule — Earn big, pay big, no matter who you are?
"This raises a huge question — Was this even fair? Should there be a separate tax structure for such unplanned high-income earners like this boatman? Or does the system work on a simple rule — Earn big, pay big, no matter who you are? What’s even more concerning is that the boatman had zero financial literacy. He had no idea about tax exemptions, reinvestments, or asset protection. Had someone guided him, he could have saved millions of rupees by smart tax planning. But instead, he ended up paying ₹12.8 crore in taxes without any understanding of why it happened," he added.
Section 4 of Income Tax Act 1961
Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions of, this Act in respect of the total income of the previous year or previous years, as the case may be, of every person:
Provided that where by virtue of any provision of this Act income-tax is to be charged in respect of the income of a period other than the previous year, income-tax shall be charged accordingly.
Section 68 of Income Tax Act 1961
Any income received by a taxpayer, including credits deposited in their accounts, should be declared for taxation unless specifically exempted by the law. Failure to do so necessitates an explanation from the taxpayer regarding the source and reason for non-reporting. This is crucial because the funds might belong to a third party and be subject to taxation in their hands.
Earlier, former Infosys CFO Mohandas Pai also said he hoped the boatman's family pays tax to Income Tax, as any other businessman.
"I hope he will pay @IncomeTaxIndia now that CM himself has spoken about him. Good," Pai wrote on social media platform X.
Taxation of the unorganised sector in India presents a challenge due to its informal structure and wide-ranging diversity. This sector comprises small enterprises and self-employed individuals who frequently operate without formal registration under any legal framework.