The ‘Transparent Taxation’ platform, launched by Prime Minister Narendra Modi on Thursday, proposes multiple reforms to improve tax compliance, faceless assessment and ease of filing returns while widening the income tax base and checking tax evasion. The Government has also introduced new sections to IT act and is making reporting of certain transactions mandatory to unearth black money.
In the course of rehaul, the Government has proposed to reduce the threshold limit of various transactions for disclosures. From the current financial year, the payments you have made for health insurance premium/ hotel bills or Property tax of more than Rs.20000 and life insurance premium of Rs.50000 will be reported Income tax authorities. The payments of over Rs 1 lakh towards school fee, purchase of white goods, jewellery, marble or paintings you have made will be reported by the concerned vendor to the Income Tax authorities. The business class airline travel by you whether domestic or foreign, would be reported, by the concerned airlines. All the above transactions would also be reflected in your Form 26 AS.
Further, property purchase above Rs 30 lakh, investments in fixed deposits, shares, mutual funds, demat, and credit card transactions of above Rs 10 lakh is proposed to be reported. The limit for cash deposits in banks has been enhanced from Rs 10 lakh to Rs 25 lakh for a savings account and Rs 50 lakh for the current account. However, irrespective of whether the transaction was reported or not, in case of bank transactions exceeding Rs 30 lakh, the assessee has to compulsorily files the income tax return and furnishes the details therein.
