Income Tax Form 26AS: Hotel
bills of over Rs 20,000 will now reflect in your ITR; check other changes
bills of over Rs 20,000 will now reflect in your ITR; check other changes
'Transparent
Taxation'
Taxation'
In a move to curb widespread
tax evasion, the Government of India has proposed to widen the scope and
reduced the threshold of various transactions to further include even white
good purchases, property tax payment, medical and life insurance premium and even
hotel payments.
tax evasion, the Government of India has proposed to widen the scope and
reduced the threshold of various transactions to further include even white
good purchases, property tax payment, medical and life insurance premium and even
hotel payments.
Prime Minister Narendra Modi
on August 13 2020 launched the 'Transparent Taxation' platform
while announcing multiple reforms to improve tax compliance, faceless
assessment and ease of filing returns. As part of the rehaul, the government has
also proposed to reduce the threshold of various transactions for tax
disclosure. This is aimed at widening the income tax base and checking tax
evasion.
on August 13 2020 launched the 'Transparent Taxation' platform
while announcing multiple reforms to improve tax compliance, faceless
assessment and ease of filing returns. As part of the rehaul, the government has
also proposed to reduce the threshold of various transactions for tax
disclosure. This is aimed at widening the income tax base and checking tax
evasion.
Medical or Life Insurance
Premium , Hotel Bills
Premium , Hotel Bills
The list will now include
white good purchases, property tax payment, medical and life insurance premium
and even hotel payments.
white good purchases, property tax payment, medical and life insurance premium
and even hotel payments.
the next time you pay a
hotel bill or medical insurance premium of more than Rs 20,000, incur an
expenditure of amount exceeding Rs 50,000 on life insurance or more than Rs 1
lakh for school fee, purchase white goods, jeweler, marble or paintings (see
table), be mindful that the entity you have made the payment to will be
informing the government of your transaction
hotel bill or medical insurance premium of more than Rs 20,000, incur an
expenditure of amount exceeding Rs 50,000 on life insurance or more than Rs 1
lakh for school fee, purchase white goods, jeweler, marble or paintings (see
table), be mindful that the entity you have made the payment to will be
informing the government of your transaction
Even payments made to the
government such as property tax and electricity bills would be reported if they
exceed Rs 20,000 and Rs 1 lakh, respectively. Business-class airline travel,
whether domestic or foreign, would be reported, as per communication from the
Ministry of Finance. These would be reflected in an individual's tax account
statement called Form 26 AS.
government such as property tax and electricity bills would be reported if they
exceed Rs 20,000 and Rs 1 lakh, respectively. Business-class airline travel,
whether domestic or foreign, would be reported, as per communication from the
Ministry of Finance. These would be reflected in an individual's tax account
statement called Form 26 AS.
Banks
Deposits , Demat accounts- Form 26 AS
Deposits , Demat accounts- Form 26 AS
“Earlier, a majority of the
high-value transactions were linked to the financial sector such as banks,
demat accounts, but now this move aims to bring everyone under the lens.
Business-class airline travel, whether domestic or foreign, would be reported,
as per communication from the Ministry of Finance. These would be reflected in
an individual's tax account statement called Form 26 AS.
high-value transactions were linked to the financial sector such as banks,
demat accounts, but now this move aims to bring everyone under the lens.
Business-class airline travel, whether domestic or foreign, would be reported,
as per communication from the Ministry of Finance. These would be reflected in
an individual's tax account statement called Form 26 AS.
Some of these had already
been announced earlier during the Union Budget or are being captured
through income tax returns. But a formal implementation has been announced.
Under the existing scenario, property purchase above Rs 30 lakh, Rs 10 lakh
invested in shares, mutual funds, demat, credit card and fixed deposit
transactions above Rs 10 lakh were reported.
been announced earlier during the Union Budget or are being captured
through income tax returns. But a formal implementation has been announced.
Under the existing scenario, property purchase above Rs 30 lakh, Rs 10 lakh
invested in shares, mutual funds, demat, credit card and fixed deposit
transactions above Rs 10 lakh were reported.
BANK DEPOSITS
The limit for cash deposits
in banks has been enhanced from Rs 10 lakh to Rs 25 lakh for savings account
and Rs 50 lakh for current account. But, if you have bank transactions
exceeding Rs 30 lakh then you would have to file a tax return, whether your
transaction has been reported or not.
in banks has been enhanced from Rs 10 lakh to Rs 25 lakh for savings account
and Rs 50 lakh for current account. But, if you have bank transactions
exceeding Rs 30 lakh then you would have to file a tax return, whether your
transaction has been reported or not.
TO
AVOID HARASSMENT
AVOID HARASSMENT
“Government has introduced
new sections and is making reporting of certain transactions mandatory to
unearth black money. This is because the number of people subjected to scrutiny
is being reduced. The tax department wants to say have faith that taxpayers
won’t be harassed as they are relying on data analytics”
new sections and is making reporting of certain transactions mandatory to
unearth black money. This is because the number of people subjected to scrutiny
is being reduced. The tax department wants to say have faith that taxpayers
won’t be harassed as they are relying on data analytics”
Faceless assessments
While it remains to be seen
how this would be implemented and whether individual taxpayers would be
burdened with additional compliance. But since June 2020, many notices have
been issued to taxpayers to verify whether they have incurred certain
high-value transactions.
how this would be implemented and whether individual taxpayers would be
burdened with additional compliance. But since June 2020, many notices have
been issued to taxpayers to verify whether they have incurred certain
high-value transactions.
Tax
Payer has to Verify his Return
Payer has to Verify his Return
“Notices to confirm
transactions reported under the taxpayers' PAN have already been issued based
on the information reported to the government. The taxpayer simply needs to
log-in to confirm whether the transactions belong to him or her,” Once you
verify or decline the transaction, the tax department would cross verify with
your income tax returns if any.
transactions reported under the taxpayers' PAN have already been issued based
on the information reported to the government. The taxpayer simply needs to
log-in to confirm whether the transactions belong to him or her,” Once you
verify or decline the transaction, the tax department would cross verify with
your income tax returns if any.
The options for an
individual include, whether the information is correct, wrong or duplicate. “If
you decline the information then they would verify with the company that
supplied the information. If you are proved wrong then you would have to revise
your income tax return,”
individual include, whether the information is correct, wrong or duplicate. “If
you decline the information then they would verify with the company that
supplied the information. If you are proved wrong then you would have to revise
your income tax return,”
RESTAURANT BILL OR SCHOOL
FEE OVER Rs 20000
FEE OVER Rs 20000
Another case in point is
whether the threshold limits for certain transactions have been set low to
include everyone under the tax net. A big group of diners at the restaurant
would exceed Rs 20,000 in hotel bill, school payments have been exceeding the
Rs 1 lakh mark for many, while Mediclaim premium would be beyond Rs 20,000 for
a family for four.
whether the threshold limits for certain transactions have been set low to
include everyone under the tax net. A big group of diners at the restaurant
would exceed Rs 20,000 in hotel bill, school payments have been exceeding the
Rs 1 lakh mark for many, while Mediclaim premium would be beyond Rs 20,000 for
a family for four.
“The threshold may seem low
if we take into account bigger cities like Mumbai, Bangalore and Delhi, but
they are reasonable from the government standpoint, which would take into
consideration smaller towns.
if we take into account bigger cities like Mumbai, Bangalore and Delhi, but
they are reasonable from the government standpoint, which would take into
consideration smaller towns.
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