India takes steps to bring more under tax net |
India is mulling steps to widen the tax base and curb tax frauds, said the Income-Tax Department on 13th August. Some say this is an effort to move away from the cash black market economy where those generations millions in income don`t report or under-report for tax purposes. India plans to expand the list of reportable financial transactions to include hotel payments over US$ 268 dollars, life insurance premium payment over US$ 669 and health insurance premium payment over US$ 268. Also, donations and payment of school/ college fees over US$ 1337 dollars, foreign travel, domestic business class air travel, purchase of white goods, jewellery and paintings over US$ 1337, Demat accounts and even bank lockers are proposed to be included in the list of the Statement of Financial Transactions or SFT. The new proposal was revealed on the same day as Prime Minister Narendra Modi announced measures aimed at easing compliance and rewarding honest taxpayers. Launching the `Transparent Taxation — Honouring the Honest` platform which promises `faceless` assessments and appeals, he said the tax administration would attempt to be “seamless, painless and faceless”. A tweet issued by MyGovIndia said these measures were proposed to widen the tax base, ensure better compliance and transparency. These are proposed measures, not yet in force.
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