WIDENING OF TAX BASE AND CURBING OF TAX EVASION

In order to curb black money in India and widening the tax base, Government is continuously taking various initiatives. One such initiative was to impose obligation on government agencies and other reporting entities who are a valuable and reliable source of information, to report high value transactions.

The scope of Statement of Financial Transaction (SFT) has been extended to widen tax base. (Updated on 13/08/2020). After the CBDT releases notification, the notified persons will start reporting the following in their SFT and the same will be a part of your FORM 26AS:

1. Payment of educational fee/ donations above Rs. 1 Lakh p.a.

2. Electricity consumption above Rs. 1 Lakh p.a.

3. Domestic business class air travel/ foreign travel.

4. Payment to hotels above Rs. 20,000.

5. Purchase of jewellery, white goods, paintings, marble, etc. above Rs. 1 Lakh.

6. Deposit/ credits in Current account above Rs. 50 Lakhs.

7. Deposit/ credits in Non-Current Account (Saving Bank Account) above Rs. 25 Lakhs.

8. Payment of Property Tax above Rs. 20,000 p.a.

9. Life Insurance premium above Rs. 50,000.

10. Health Insurance premium above Rs. 20,000.

11. Share transactions/ D-MAT accounts/ Bank Lockers.