The New Tax Provision Has Made Tax Evasion Next To Impossible in 2020
The tax has always been a subject of great eminence. People always look for ways to evade taxes. Now the tax evasion will become even harder and tightened. Such things have been inserted in the government’s new tax charter that tax evasion will be difficult. Now in Form 26 A.S., you have to include bills like property tax, medical bills, hotel bills and insurance premiums. This will show how much your actual income is.
The scope of things shown in Form 26 A.S. Increased
The government has decided to increase the scope of items already shown in Form 26AS to curb tax evasion. Now it will also include the purchase of white goods, payment of property tax, payment of medical and life insurance premiums and payment of hotel bills. Along with this, their spending limit will also be reduced.
Ease of tax return
Prime Minister Narendra Modi on Thursday launched a new tax platform. Along with this, many more tax reforms such as faceless assessment and simplification of return filing were also announced to increase the scope of the tax. In its effort to bring reform, ease and transparency in the tax system, the government has also decided to reduce the limit of all types of transactions for tax disclosure.
From hotel bill to small bill
Now if you buy a white good, pay property tax, pay medical or life insurance premium and hotel bill, the biller will have to inform the government. All these expenses will be recorded in your Form 26AS. According to this, you will pay an insurance premium or hotel bill of more than 20 thousand rupees. Will spend more than Rs 50,000 on life insurance. If you pay more than one lakh rupees of school fees or purchase any white goods, jewellery, marble or painting, then the money you have given for these things will have to be reported to the government.
Up to 20 thousand information has to be given
Even if the amount is more than 20 thousand and one lakh rupees, information about payment of property tax and electricity bill will also be sent to the government. Apart from this, information on business class air travel both domestic and foreign will also go to the government. All these expenses will be deposited in advance in the tax account. In the present circumstances, buying assets worth more than Rs 30 lakhs, investing Rs 10 lakhs in shares, mutual funds, Demat, credit cards and fixed deposits are required to report transactions of more than Rs 10 lakhs.
Plan to bring out black money
The limit of cash deposits in banks has been increased from 10 lakhs to 25 lakhs for the savings account and 50 lakhs for a current account but if you make a banking transaction of more than 30 lakh rupees then you have to file a tax return. Whether your transaction has been reported to the tax department or not. The government has enacted new laws to bring out black money and is making it mandatory to give information about certain types of transactions and purchases. Relying more on data analytics, the government is giving the message that taxpayers will not be disturbed.
People are getting notice since June
However, since June 2020, taxpayers have been receiving all such notices, confirming whether they have done certain high-value transactions. You can confirm this by going online. If you deny that you have done any of these transactions, then the tax department will cross-verify with the informing company. In this case, if your claim is found to be false, then you will have to change your income tax return. All these things were already decided by the government.
In the population of 138 crores, the number of tax collectors is still a few crores. In such a situation, the government is planning to increase the tax scope to more people.