File tax returns if you have trips abroad, high electricity bills
New Delhi, July 7 () The government has made mandatory the filing of the income tax declaration for large consumers, even if their taxable income is below the exemption limit of Rs 5 lakh.
Reporters include people who spend more than Rs 2 lakh on a trip abroad or who deposit millions of Rs 1 in a year in a bank account or who pay an electricity bill of more than Rs 1 lakh in a year.
Currently, a person other than a company or company is required to provide the income statement only if their total income exceeds the maximum amount not attributable to taxes, subject to certain exceptions. Therefore, a person who performs certain high-value transactions is not necessarily required to provide his income statement, as indicated in the Budget documents.
He proposed modifying Article 139 of the Income Tax Law to ensure that people who perform certain high-value transactions have to present their income statement.
Therefore, any person who in the previous year has deposited an amount or aggregate of the amounts that exceed Rs a year in one or more current accounts maintained with a banking company or bank cooperative, or has incurred expenses of an amount or aggregate of the amounts exceeding Rs two lakh for him or any other person to travel to a foreign country, or having incurred an expense of an amount or aggregate of the amounts exceeding Rs one lakh for the consumption of electricity will have to submit a tax return.
In addition, anyone claiming the benefits of tax exemption from long-term capital gains under various provisions under Article 54 of the Income Tax Law will have to file a tax return.
In addition, at present, a person who claims the reinvestment benefit of the exemption from the capital gains tax on investment in specific assets such as house, bonds, etc., is not required to provide a return on income, if, After claiming such reinvestment benefits, your total income is No more than the maximum amount not attributable to taxes.
In order to make the return provision mandatory for such persons, it is proposed to amend the sixth condition of article 139 of the Law to establish that a person who claims such reinvestment benefits in an investment in a house or a bond or other assets, he will necessarily be required to provide a refund, if, before claiming reinvestment benefits, his total income is greater than the maximum amount not attributable to taxes, he said.
These amendments will become effective as of April 1, 2020 and, as a result, will be applied in relation to the evaluation year 2020-21 and the subsequent evaluation years.
To discourage cash transactions and move towards an economy with less cash, the Budget also proposed inserting a new section 194N in the Income Tax Law to establish a TDS tax at a rate of 2 percent in cash payments that exceed Rs 1 crore collectively, made during the year by a banking company or bank cooperative or post office to any person from an account maintained by the recipient.
It is proposed to exempt the payment made to certain recipients, such as the Government, the banking company, the cooperative society dedicated to the banking business, the post office, the banking correspondents and the white-label ATM operators, who participate in the management of important amounts of cash as part of its commercial operation, from the application of this provision, say the Budget documents.
It is proposed to enable the central government to exempt other recipients, through a notification in the Official Gazette in consultation with the Reserve Bank of India. This amendment will be effective as of September 1, 2019. ANZ ABM