In order to curb tax evasion and widen the taxpayer base in the country, the Centre might notify more classes of people to file income tax returns (ITR).
The government has been consistently working towards containing evasion of taxes. Earlier, in the Union Budget 2019 presentation, the Finance Minister Nirmala Sitharaman had proposed to impose a 2% tax deducted at source (TDS) on cash withdrawals more than Rs 1 crore from bank accounts to ensure that people evading taxes also fall under the ambit of the tax department.
A wide array of amendments were announced to contain tax evasion in the Budget. This included proposals to make tax filing mandatory for individuals whose electricity bill exceeded Rs 1 lakh.
The Centre has also proposed to make tax return filing compulsory for individuals whose foreign travel expenses exceeded Rs 2 lakh and people who deposited Rs 1 crore or more in their current accounts during an assessment year.
Tax experts expect people who spend extravagantly on hosting parties, purchase of cars and hotels to be included in the Centre’s plan to contain the generation of black money. The government had earlier announced that individuals performing transactions of high-monetary value would soon be included in the taxpayer base.
The Modi government has been consistently coming up with various measures to make India a cash-less economy during the last few years through which the generation of black money has been kept contained.
Abbreviation is the name of the game – SIP, NPS, ELSS, KTM, and OMR.
Vishnu is the cat that got too curious. He can normally be found staring at market charts or drooling over his Real Madrid curios.
Favourite quote: ” Madrid, Madrid, Madrid ¡Hala Madrid! Y nada más”