Transparent taxation scheme

PM Modi dispatched transparent taxation scheme conspire on 13th of August 2020, which gets numerous progressions taxation system. The government said no taxpayer ought to be abandoned in the drive to guarantee better compliance and transparency.

The Income Tax Department is looking forward to dig the data to identify people, who are making large purchases, but are not paying taxes or filing their tax returns.

Expenses which are going to reflect in 26AS.

Expansion of scope of reporting of transactions(SFT):-

• Payment of Education fees exceeding Rs.1 lakh.
• Payment of donation above Rs.1 lakh p.a
• Electricity consumption above Rs.1 lakh.
• Domestic business class air travel / foreign travel.
• Expenditure of Rs 2 lakh on foreign travel.
• Payment to hotels above Rs.20000.
• Deposit above Rs 1 crore in current account.
• Purchase of Jewellery, white goods, painting, marble, etc. above Rs.1 lakh.
• Deposit or credits in current account above Rs,50 lakhs.
• Deposit/ Credit in non-current account above Rs.25 lakhs.
• Payment of property tax above Rs.20000 p.a.
• Life insurance premium above Rs.50,000.
• Health insurance premium above Rs.20,000.
• Share transactions / DMAT accounts / Bank lockers. TDS on cash withdrawal above Rs 1 crore (Rs 20 lakh for non-filers).

Deduction or Collection of Tax on new transactions:-

• TCS on motor vehicle above Rs 10 lakh
• TCS on foreign remittance under LRS above Rs 7.5 lakh/overseas tour packages.
• TDS on ecommerce suppliers.
• TCS on purchase of goods above Rs 50 lakh.
• Sale of foreign exchange above Rs 10 lakh.

Deduction or collection of tax at higher rates for non-filers of return.

Expansion of scope of Reporting of Transaction(SFT).

• Cash deposit or withdrawal of Rs.50 lakh or more in current account.
• Cash deposit of Rs.10 lakh or more in non-current account.
• Sale of foreign exchange above Rs.10 lakhs.
• The reporting of transactions of mutual funds, credit card transactions, immovable property, etc rationalised.

Compulsory filing of return by person

• having bank transaction above Rs. 30lakhs,
• all professionals, business having turnover above Rs.50 lakhs,
• payment of rent above Rs. 40,000.