Rs 20,000 hotel bill, Rs 50,000 insurance premium may come under I-T lens

 

In a list of proposed measures to widen the tax base, in a tweet, government said no taxpayer should be left behind in the drive to ensure better compliance and transparency.

Did you spend over Rs 20,000 on a hotel stay or took a domestic business class fight? You could well come under the income tax scanner as the government plans to widen the list of reportable financial transactions to plug tax evasion and widen the tax base.
The government proposes to include payments over Rs 50,000 on life insurance, health insurance premium payment over Rs 20,000, foreign travel and donations and payment of school/ college fees over Rs 100,000 a year in the list of Statement of Financial Transactions (SFT). Other transactions proposed to be included are purchase of white goods, jewellery and paintings over Rs 100,000 and demat accounts and bank lockers.

With a list of proposed measures to widen the tax base, in a tweet, government said no taxpayer should be left behind in the drive to ensure better compliance and transparency.

Reporting of these transactions will help greater monitoring by the income tax department, especially through the use of technology like artificial intelligence and machine learning.

Besides, those having bank transactions over Rs 30 lakh will have to compulsorily file income tax return. Similarly, return filing is proposed to become mandatory for all professionals and busineses having turnover of over Rs 50 lakh and in case of rent payment above Rs 40,000.