Prime Minister Narendra Modi recently launched the ‘Transparent Taxation’ platform with an aim to streamline the tax-paying process for people and reducing the scope for corruption and overreach by officials.
According to PM Modi, every citizen of India should know about transparent taxation because it is expected to affect everyone either directly or indirectly. All white good purchases, property tax, medical and life insurance premium payment, business-class airline travel (domestic or foreign) and even hotel bill payments will be included in this new proposal to keep a check on tax evasion.
According to the new proposal, if a person pays hotel bill or medical insurance premium of over Rs 20,000, incur an expenditure of exceeding Rs 50,000 on life insurance or over Rs 1 lakh for school fee, buy white goods, jewellery, or paintings, then the institution/organisation he/she has made the payment to will inform the government about the transactions without any failure.
Not only this, if the payments of property tax and electricity bill which surpass Rs 20,000 and Rs 1 lakh, respectively, also has to informed as these will be reflected in Form 26 AS, an individual’s tax account statement.
It is worthwhile to mention here that a majority of the high-value transactions were linked to the financial sector such as banks, demat accounts earlier but now this move aims to bring everyone under the lens.
Currently, purchasing of property above Rs 30 lakh, Rs 10 lakh invested in shares, mutual funds, demat, credit card and fixed deposit transactions of amount above Rs 10 lakh were reported. Moreover, the limit for cash deposits in banks has also been increased from Rs 10 lakh to Rs 25 lakh for savings account, while Rs 50 lakh for the current one.