The finance ministry has proposed new measures to ensure better income tax compliance The proposal includes reporting of transactions like hotel bills above ?20,000, electric bill of over ?1 lakh, etc As part of measures to widen the tax base by increasing compliance, the government has proposed a series of new measures which will bring transactions like paying hotel bills of above ?20,000, buying business class flight tickets, purchase of jewellery above ?1 lakh, etc under the scanner of the income tax department. While launching the 'Transparent Taxation -- Honoring the Honest' platform yesterday, Prime Minister Narendra Modi had yesterday said the ongoing reforms aim at making the tax system seamless, painless, faceless.
The finance ministry has also proposed new measures to ensure better compliance and transparency by expanding the scope of reporting of following transactions: 1) Education related fees and donations above ?1 lakh in a year 2) Electricity bill of more than ?1 lakh in a year 3) Domestic business class air travel or foreign travel 4) Hotel bills above ?20,000 5) Purchase of jewellery, white goods, paintings, marble, etc above ?1 lakh 6) Deposits or credits in current account above ?50 lakh 7) Deposits or credits in non-current account above ?25 lakh 8) Payment of property tax above ?20,000 per annum 9) Life insurance premium above ?50,000 10) Health insurance premium above ?20,000 11) Share transactions, demat account, bank lockers Besides, the government has also proposed to deduct TDS at higher rates for those who do not file income tax returns (ITR). There is also a proposal for compulsory filing of ITR by those having bank transactions above ?30 lakh, all professionals and businesses having turnover of more than ?50 lakh and payment of rent above ?40,000.
Source: live mint
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