News and Updates

Alterations In Income Tax Form 26AS

For gaining the required amount of taxes and curbing of tax evasion practices of people, the Government of India, proposed to widen the scope and reduce the threshold of various transactions to further include even white good purchases, property tax payment, medical and life insurance premium and even hotel payments. Hon’blePrime Minister Narendra Modi launched the 'Transparent Taxation' platform on 13^th of Aug, 2020, aiming towards widening the income tax base and keeping tax evasion malpractices, in check. The list will now include white good purchases, property tax payment, medical and life insurance premium and even hotel payments.

Transactions to be informed in form 26AS to Government are as follows:-

• Hotel Bills/Medical Insurance Premium, exceeding Rs.20,000
• Life Insurance Premium exceedingRs.50,000
• Spending more than Rs.1 Lakh in school fees, purchase of white goods, jewellery, marble or paintings
• Property tax reported, exceeding Rs.20,000
• Electricity bills submitted, exceeding Rs.1 Lakh
• Business-Class Airline travel, whether domestic or foreign, would be reported, as per communication from the Ministry of Finance.

Transactions to be reported under the existing Taxation Scheme are as follows:-

• Property purchase above Rs.30 Lakh
• Invested the amount exceeding Rs.10 lakh in shares, mutual funds, demat, credit card
• Fixed deposit transactions above Rs.10 Lakhs
• Cash deposits in banks exceeding Rs.30 Lakhs (Earlier this year, cash limit was enhanced from Rs.10Lakhs to Rs.25Lakhs for Savings Account and Rs.50Lakhs forCurrent Account)

Government has taken such reform measures in order to reduce the dearth of economic sources of the country and to unearth black money. Therefore, it is mandating to report certain transaction, which may raise the concern of Income Tax Authorities. This would ensure that the honest taxpayers shall be rewarded, without being subjected to unnecessary scrutiny. These initiatives are in the direction to make Indian Taxation System more and more transparent, with actual benefits to those who observe their duties to pay taxes, honestly. It would help for adopting the welfare projects for the country and hence givingthe higher economic growth prospects.