PM Narendra Modi launched the ‘Transparent Taxation’ platform on Independence Day. The platform will provide faceless assessments, faceless appeals and a taxpayers’ charter. It is to benefit honest taxpayers who have been prompt with complying with income tax laws. The Finance Ministry has further proposed new reforms to ensure compliance, as part of the overall set of reforms.
Education fees and donations made above Rs.1 lakh in a year may come under the tax department’s scanner. The list of expenses includes hotel bills exceeding Rs.20,000, purchase of white goods over Rs.1 lakh, an electricity bill exceeding Rs.1 lakh in a year, payment of property tax above Rs.20,000 per annum, health insurance premium paid over Rs.20,000 and travel which includes domestic business class air travel or foreign travel.
Also Read: Does a TDS rate cut reduce your income tax liability?
Deposit made in a current account over Rs.50 lakh and deposits or credits made in a non-current account exceeding over Rs.25 lakh will also come under the IT department’s radar. Details of share market transactions, Demat accounts and details of bank lockers will be monitored as well.
Besides the above, there is a proposal to deduct TDS at higher rates for those persons who do not file income tax returns (ITR). Filing of returns may also be mandated for persons having bank transactions exceeding Rs.30 lakh, and for all professionals and businesses who have a turnover of over Rs.50 lakh or pay a rent exceeding Rs.40,000 per month. At present, these have just been proposals made by the Finance Ministry, and there has been no notification released yet.
For any clarifications/feedback on the topic, please contact the writer at athena.rebello@cleartax.in
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