The Modi Government takes some concrete steps in the budget to stop tax fraud
Tuesday - July 9, 2019 10:39 am ,
Category : OPINION & INTERVIEW
'New' proposals in budget to increase income tax
Now you have to fill income tax returns in these 'conditions'!
JULY 09 (WTN) – Everyone wanted to know that what would be special in the Modi Government’s second term’s first full budget. Everyone has different opinions on the budget of Nirmala Sitharaman presented by her as the first woman finance minister of India. But in her first budget, you need to know about the new rules proposed by Finance Minister Nirmala Sitharaman regarding income tax.
In fact, some new rules have been proposed from this time budget to fill income tax returns. For your information, let you know that in the General Budget 2019-20, the Modi Government has brought this proposal for the purpose of hindering tax fraud and enhancing tax base. The Proposals for certain amendments have been made in the Finance Bill (two) -2019 with section 173 of the Income Tax Act. Under this, it will be mandatory for any person to fill an income tax return if a person will have a transaction exceeding a certain amount, even his annual income is less than Rs 5 lakhs.
For an example, if a person has spent more than Rs 2 lakhs on foreign travel, it would be mandatory to fill the Income Tax Return to him, even though his annual income is less than Rs. 5 lakhs. At the same time, if someone's electricity bill is more than one lakh rupees per year, or if a person deposits more than one crore rupees in a banking company or in banks in his current accounts related to more than one bank, in all these circumstances, even if the annual income of the concerned person is less than Rs 5 lakh annually, it would be mandatory for him to fill the Income Tax Return.
That is, in the budget of this time, it is proposed that in all these three circumstances, if the relevant taxable income of the concerned person is less than Rs 5 lakh annually, then he will have to pay an Income Tax Return. For your information, let you know that it is mandatory to give income tax details to the persons claiming tax exemption on long-term capital gains under section 54 of the Income Tax Act.
Let you know that even though investing in capital gains like assets and bonds, income tax is exempted so far, and so far it does not need to pay an income tax return. But for your information, let you know that all proposed amendments in the budget will be effective from April 1 next year, and the assessment year will be applicable for 2020-21 and beyond.
At the same time, you should know that in this budget, there is a proposal to add a new Section-194 N to the Income Tax Act to limit cash transactions in the country, and to encourage check and online transactions. Under this new proposal, if a person has withdrawn the cash of more than Rs One crore per year from banks, cooperative banks, and post office then tax deduction i.e. TDC will be charged on the source at the rate of 2% on concerned withdrawal.
But for your information, let you know that this provision will not apply to government, banking companies, cooperative societies engaged in banking work, post offices, banking representatives and white label ATM operators. That is why, because they all have to use huge amount of cash under the business.
It is seen that in order to make Income Tax Returns and discourage cash transactions from the most people, the Modi Government has made some proposals in this budget. Through these proposals, the Modi Government claims that tax cheating will be barred and it will help in increasing the tax base. Now it is necessary to see how much profit from these budgetary proposals of the Modi government, and how much increase in the revenue of the government.
JULY 09 (WTN) – Everyone wanted to know that what would be special in the Modi Government’s second term’s first full budget. Everyone has different opinions on the budget of Nirmala Sitharaman presented by her as the first woman finance minister of India. But in her first budget, you need to know about the new rules proposed by Finance Minister Nirmala Sitharaman regarding income tax.
In fact, some new rules have been proposed from this time budget to fill income tax returns. For your information, let you know that in the General Budget 2019-20, the Modi Government has brought this proposal for the purpose of hindering tax fraud and enhancing tax base. The Proposals for certain amendments have been made in the Finance Bill (two) -2019 with section 173 of the Income Tax Act. Under this, it will be mandatory for any person to fill an income tax return if a person will have a transaction exceeding a certain amount, even his annual income is less than Rs 5 lakhs.
For an example, if a person has spent more than Rs 2 lakhs on foreign travel, it would be mandatory to fill the Income Tax Return to him, even though his annual income is less than Rs. 5 lakhs. At the same time, if someone's electricity bill is more than one lakh rupees per year, or if a person deposits more than one crore rupees in a banking company or in banks in his current accounts related to more than one bank, in all these circumstances, even if the annual income of the concerned person is less than Rs 5 lakh annually, it would be mandatory for him to fill the Income Tax Return.
That is, in the budget of this time, it is proposed that in all these three circumstances, if the relevant taxable income of the concerned person is less than Rs 5 lakh annually, then he will have to pay an Income Tax Return. For your information, let you know that it is mandatory to give income tax details to the persons claiming tax exemption on long-term capital gains under section 54 of the Income Tax Act.
Let you know that even though investing in capital gains like assets and bonds, income tax is exempted so far, and so far it does not need to pay an income tax return. But for your information, let you know that all proposed amendments in the budget will be effective from April 1 next year, and the assessment year will be applicable for 2020-21 and beyond.
At the same time, you should know that in this budget, there is a proposal to add a new Section-194 N to the Income Tax Act to limit cash transactions in the country, and to encourage check and online transactions. Under this new proposal, if a person has withdrawn the cash of more than Rs One crore per year from banks, cooperative banks, and post office then tax deduction i.e. TDC will be charged on the source at the rate of 2% on concerned withdrawal.
But for your information, let you know that this provision will not apply to government, banking companies, cooperative societies engaged in banking work, post offices, banking representatives and white label ATM operators. That is why, because they all have to use huge amount of cash under the business.
It is seen that in order to make Income Tax Returns and discourage cash transactions from the most people, the Modi Government has made some proposals in this budget. Through these proposals, the Modi Government claims that tax cheating will be barred and it will help in increasing the tax base. Now it is necessary to see how much profit from these budgetary proposals of the Modi government, and how much increase in the revenue of the government.
