• In India some Indics avail of Tax Benefits under Income-tax Act by saying we are Hindu but a Minority for government schemes. So also, Scheduled Tribes in the Northeast, having mostly converted, and even elsewhere continue to be treated as ST! In Census, Indics must state they are Hindu if they wish to avail tax benefits of HUF and Scheduled Tribes be classified by religion.

For reasons that are beyond the scope of this article, the Hindu community is allowed a tax-break by creating a HUF (Hindu United Family). Once recognised HUF gets a separate Permanent Account Number and is taxed separately. If structured sensibly HUF can become an efficient tax planning tool.

Briefly, a HUF is a separate entity (person under section 2 (31) the Income-Tax Act). “Under Hindu Law an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.” 

When enacted Hindu under the 1961 Act meant Hindus, Buddhists, Sikhs and Jains. However, Jains were declared a minority in 2014 and Sikhs / Buddhists in 1992.

When this change was effected in 1992, the definition of the word Hindu was not changed in the Income-Tax Act. So Sikhs, Jains and Buddhists can avail of twin benefits. One of having a HUF being Hindu under the 1961 Act and two benefits of minority related schemes. For example -

They are considered a minority under Article 30 – rights of minorities to establish and administer educational but are Hindu under Article 25 . Explanation II reads, “In sub-clause (b) of clause (2), the reference to Hindus shall be construed as including a reference to persons professing the Sikh, Jain or Buddhist religion, and the reference to Hindu religious institutions shall be construed accordingly.” Today Sikhs and Jains are considered a minority by the Reserve Bank of India . Lending to minorities/STs come under Priority Sector Lending for banks.

According to a Business Standard report of December 22, “Decoding the business empire of the Badal's", there exists a Badal HUF and Sukhbir Singh HUF. I wondered how the Badals, followers of Sikh religion, have a Hindu Undivided Family (HUF) that as the name suggests should be applicable to Hindus only. After all, notwithstanding the very close social and cultural relations between Hindus and Sikhs, Government and Courts consider Sikhs to be a minority. It is not known if the Badal’s holding of shares through HUF has changed since BS article was first published. 

So also, in the North-east Scheduled Tribes can avail of ST benefits inspite of majority of them having converted to Christianity.

This matters because say in Manipur the Meitie community (Hindus) are liable to pay income-tax whilst Scheduled Tribes are not. Here is why.

According to section 10 (26) of the Income-Tax Act (excerpts), “A member of a Scheduled Tribe, as defined under clause 25 of article 366 of the Constitution, who resides in the States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura is exempt from paying income-tax on any income which accrues or arises to him in these States.”  

Except the fair man, a tourist, the rest are Scheduled Tribes. Kohima, Nagaland. 2014. 

This exemption has become a route for tax evasion. Debashis Basu wrote in the Business Standard of January 9 2017, "The buzz in Kolkata is that this is the conversion route used by many politicians. Some tribal communities of the Northeast are exempt from paying income tax. According to reports, thousands of crores have been transferred from other parts of the country to the Northeast.”

Can a community be a Minority and Hindu under different government laws?

During a 2014 visit this author got to know of Bangladeshi men marrying Naga girls in large numbers. Girls belonged to the Sema (Sumis) tribe. Read Outlook

Would the children out of this wedlock be considered ST, Muslim or Christian?

Chang Tribe, Hornbill Festival Kohina, Nagaland. 2014. 

So here are suggestions for those designing the Caste Census – 

1. The caste must be ascertained for followers of Indic Faiths only i.e. Hindus, Buddhists, Jains and Sikhs. Read  Caste in Sikhs  and  Caste in Jains and not for Indian followers of Islam and Christianity because there is no concept of ST, SC, OBC in Islam and Christianity. Read  When caste was not a bad word And Benefits of Caste System

Sanatana Dharma or Hinduism allows its followers to practice as they wish. You can be a Hindu and simultaneously be an atheist, go to a Church, visit Shirde ke Sai Baba, not worship murtis, be a follower of Jaina tradition etc.–all permitted. 

2. If the government wishes to know how many Muslims are Ashraf, Pasmanda that count can be done independently.    

3. Every person who belongs to a Scheduled Tribe must, if he wishes to avail of HUF tax benefits provided by the Income-Tax Act, declare he/she is a Hindu in the 2025/26 census. There must be a disclosure that he/she is not a Christian or Muslim. Many minorities who convert, retain their original names to avail of multiple state benefits.

So also Sikhs, Jains and Buddhists who avail of tax benefits under HUF under the Income-Tax Act must state they are Hindus in the 2025/26 census.

In all cases, asking for their PAN numbers can be a way to counter check.

4. The word Dalit is not found in the Indian Constitution and should not be used to classify people during the census.

The Indian Constitution does not define the word Minority. The word came into use around 1950, when the Constitution was adopted.

Bust of Ambedkar at entrance of Ujjayanta Palace (Agartala), former residence of rulers. Ambedkar spoke about SC not ST. 2014.

R D Burman belonged to the Tripura Royal Family who are considered Scheduled Tribes. 

Also read

1. Are ST converts ST under Uniform Civil Code

2. Trying to divide Hindus by caste

3. To read all articles on Caste on site  

4. Why caste census is complex