Income Tax Update: Now, Hotel Bills Over Rs 20,000, Education Fee Over Rs 1 Lakh Likely To Come Under IT Scanner

This move will ensure that financial institutions and other firms report transactions that are above the prescribed thresholds.

FILE PIC/AFP.

New Delhi: In an attempt to widen the tax net, the government is looking to bring transactions including the purchase of jewellery, white goods and paintings of above Rs 1 lakh, payment of education fees and donations of a similar amount, domestic business class and foreign travel, and hotel bills of Rs 20,000 under the IT tax scanner. The move has been indicated in a tweet.

What does it mean? The Income Tax department is aiming to include more transactions under its transaction reporting framework. This move will ensure that financial institutions and other firms report transactions that are above the prescribed thresholds. It will help the tax department to mine the data and identify people, who are making large purchases, but are not paying taxes or filing their tax returns.

What kind of transactions will be included? Transactions such as payment of life insurance premium of above Rs 50,000, payment of health insurance premium and property tax payment of more than Rs 20,000 and electricity consumption of above Rs 1 lakh will come under the IT scanner. It is still not clear if these limits will be applicable to transactions done through online mode or via cash. Note, these transactions will be in addition to the existing reporting requirements for banks and other financial transactions relating to highvalue cash deposits in current and savings accounts, besides the purchase of bonds and debentures and payment of credit card bills, as mentioned in a report by ThePrint. Honouring the tax payers, the Prime Minister Narendra Modi, on Thursday launched the programme 'Transparent Taxation - Honoring the Honest' through a video conference. The Faceless Assessment and Taxpayers Charter got implemented from Thursday.