Lawstreet Journal

Hotel Bills Above Rs 20,000, Jewelry Purchase of Over Rs 1 Lakh and more Likely to Come Under Income Tax Scanneras Government Proposes Transaction Threshold Overhaul

Lawstreet Journal 18 Aug 2020 12:31am

Image courtesy: Lawstreet Journal Executive Hotel Bills Above Rs 20,000, Jewelry Purchase of Over Rs 1 Lakh and more Likely to Come Under Income Tax Scanneras Government Proposes Transaction Threshold Overhaul

Modi Government has announced a huge shift in the Income Tax Administration to make it simple, less hectic and transparent. Expenses like restraint bills over Rs 20,000, purchase of jewelry, white goods which have the cost over 1 lakh, insurance premiums over 20,000, School/College fees of over 1 Lakh, could get a person under Income Tax Scanner. 

In a list of proposed measures to widen the tax base, Prime Minister Modi tweeted that ‘government said no taxpayer should be left behind in the drive to ensure better compliance and transparency.’

Though, already expenses such as a purchase of jewelry above Rs 2 lakh is considered to be illegal if PAN number is not quoted and once, these proposed estimates kick in, the scope will be widened additionally, said an Income Tax Official.

According to the tweet, such transactions including others will be a part of the transaction reporting framework of the income tax department. It is recognized that, to include these transactions formally, the Income Tax Department will have to come up with an official notification.

Suggesting, that once the official notification comes in, the financial institutions and other firms may have to present the transactions that are above the prescribed thresholds. The Income Tax Department will then mine the data to identify people, who are making large purchases, but are not paying taxes or filing their tax returns.

The move comes in the beyond of the observation made by Prime Minister Narendra Modi that in a country of 130 crore of population, only 1.5… Continue Reading...


Tagged: Income Tax   Income Tax Appellate Tribunal  
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