Payment of Insurance Premium, School Fees, Hotel Bills to Come Under IT-Scanner

05:50 AM Aug 14, 2020 | G Plus News

GUWAHATI: To ostensibly widen the tax base, the Income-Tax Department of India plans to expand the list of reportable financial transactions.

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As per the revised list, hotel payments over Rs 20,000, life insurance premium payment over Rs 50,000 and health insurance premium payment over Rs 20,000 will now come under the IT-scanner. 

Besides these, donations and payment of school/ college fees over Rs 1 lakh a year, foreign travel, domestic business class air travel, purchase of white goods, jewellery and paintings over Rs 1 lakh, demat accounts and even bank lockers are proposed to be included in the list of the Statement of Financial Transactions (SFT).

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The new proposal was revealed on a day Prime Minister Narendra Modi announced measures aimed at easing compliance and rewarding honest taxpayers.

Launching the ‘Transparent Taxation — Honouring the Honest’ platform which promises ‘faceless’ assessments and appeals, he said the tax administration would attempt to be “seamless, painless and faceless”.