Income Tax: Hotel Bills above 20k and Business Class flight tickets to be Scanned

Income Tax: Hotel Bills above 20k and Business Class flight tickets to be Scanned

Amidst coronavirus pandemic, the Finance Ministry has issued new measures to ensure better tax compliance. According to Prime Minister Narendra Modi, the ongoing measure aims at making the system more ‘seamless, painless’ and ‘faceless’.

To widen the tax base and to encourage compliance, the government has now proposed a new measure which will include hotel bills above Rs 20,000, buying business class tickets, purchase of jewelry above Rs 1 Lakh among others under the scanner of Income Tax Department.

The Finance Ministry focused on providing transparency in compliance. Other measures include:

  1. Electricity bill of more than Rs 1 Lakh in a year.
  2. Education-related fees and donation up to Rs 1 Lakh in a year.
  3. Hotel Bills above Rs 20,000.
  4. Deposits or credits in the current account above ₹50 lakh.
  5. Payment of property tax above ₹20,000 per annum
  6. Purchase of jewelry, white goods, paintings, marble, etc above ₹1 lakh
  7. Health insurance premium above ₹20,000
  8. Deposits or credits in non-current account above ₹25 lakh
  9. Life insurance premium above ₹50,000
  10. Share transactions, Demat account, bank lockers
  11. Health insurance premium above ₹20,000

Also, the government proposes to deduct TDS at higher rates for those who do not file Income Tax Returns (ITR). 

Another measure is to compulsory ITR filing for those having bank transactions above Rs 30 Lakh, payment of rent above Rs 40,000, and professionals and businesses having turnover of above Rs 50 Lakh.  

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