Government New Order On Transaction Of 20 Thousand Rupees To Stop Tax Evasion

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Government New Order On Transaction Of 20 Thousand Rupees To Stop Tax Evasion

India’s Finance Minister Mr. Arun Jaitely said in his report after demonetization we want normal India. The base of the tax is very weak in country. There are number of direct taxes which are collected by centre government and there are various indirect taxes which are collected by state government as well as centre government.

The tax payers have to suffer more due to these indirect taxes. So the government has started the new tax Goods and Service tax which has fill online through the GST no. This tax was introduced after demonetization. This will help people as well as government or national tax authorities to keep an eye on the tax payers.

Government New Rule On Tax Payers

The people will also have to give information of 20 thousand transactions to prevent tax evasion to the Government. After reinforcing theft of indirect taxes through goods and services tax (GST), the central government has stepped in to improve direct tax. Under this, the auditors will have to provide information of every transaction exceeding Rs 20,000 for the real estate in the returns recorded in the income tax department on behalf of their clients.

Government Order On Transaction Details

This will increase transparency in transactions and curb tax evasion. This change, implemented from the financial year 2016-17, will come into effect from 19th July, 2017. For the audit tax filing, the form 3 CD has been amended for filing income tax returns so that more than Rs. 20,000 for real estate. Every transaction can be recorded in the prescribed format.             

New Transaction Rule Notified

In the auditor report, detailed information should also be given about the payment like name of the borrower or the depositor with the address and permanent account number (PAN), i.e., to indicate that the account payee has used check or buyer check has been used for payment or else it has been executed through electronic means. Rules against tax evasion are very necessary this will help in development of the country.

Government New Rule On Payment Method

According to the arrangement till now, the auditor had to give only information about the transactions of more than 20 thousand rupees in case of real estate loan or repayment, but now every such information will be filled in the fixed format.

Income Tax Rule

As from 1 January, 2018 the Indian Tax Authorities have direct access to the tax payer companies. They can check by them self if the company has follow the new force of rules or not. The new rules are decided on the basis of the earning. There are different rules for the different earning groups. The persons who earn from 2.5 lakh to 5 lakh they have to give 5 percent of his income.

It is noteworthy that under the Income Tax Act, it is mandatory for those who earn Rs 50 lakh annually and audited accounts for companies with turnover of more than Rs 1 crore. In the case of companies, the turnover limit has been increased to Rs 2 crores from assessment year 2018-19.

Tax Evasion

Tax evasion is an illegal issue. This is related to any person, corporation or organization who will not give exact details of their income. Whenever they find guilty they will have to pay penalties and comes under criminal charges.

So this is a good move from government side if it is implemented successfully to reach one step more forward to stop tax evasion and to stop such people those don’t show interest in paying tax to the government.

If the new rules get follow and the citizens of the country stop doing tax evasion this will help greatly and the economical condition of the country will get improved and it will also help to remove poverty issues in the country.

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