Saturday, March 28, 2020
Home Opinions Do Not Forget to Declare Loan and Card Payment Over 2 Lakhs in Cash...

Do Not Forget to Declare Loan and Card Payment Over 2 Lakhs in Cash In ITR

Also Read

New ITR forms have a newly added column for declaring all the cash payment over 2 lakhs made for credit card and loan bills during the post-demonetisation period. This is mandatory to declare all the cash transaction over 2 lakhs made during the period of 9th November to 30th December while filing income tax return. The government has recently launched new ITR form for the assessment year 2017-18 which has separate columns for declaring such cash transactions.

This new column must be used for declaring any cash payment made to loan settlement or credit card bill settlement during the 50 days note ban period. The intention to introduce his column is to match cash deposit details made during that period with the total income of the taxpayer. All bank loans and credit cards are provided upon furnishing PAN details so any payment towards them can be easily traced by the Income Tax department. The data provided in income tax return filing will be collated with the credit card payment and loan payment details to find out if any payment over 2 lakhs has been made in cash or not during the specified period.

This step is the outcome of strategic thinking to trace black money that has been used to settle down credit card bill or loan payment. This also associates concern of tracing black money settlement done by using credit cards for heavy purchases during the demonetisation period. After the demonetisation announcement, Indian citizens were given a 50 days’ window to deposit all banned notes into their bank account. It was a last chance for the tax evaders to declare their black money by paying a tax at 50% rate.

- article continues after ad - - article resumes -

However, the column related to declaring cash transaction over 2 lakhs is clearly an attempt to find the tax evaders. Although, officials from IT departments has made it clear that these columns for declaring cash transaction will not be there in the ITR forms from next assessment years. Also, it has been reflected from official releases that ITR forms will be modified according to the needs every year. Also, the types of ITR forms have been cut down from nine to seven this year by the Central Board of Direct Taxes (CBDT). Along with new columns, there are many other changes have bene introduced this year for income tax return filing. Now linking Aadhaar card with PAN card is mandatory for the taxpayers. Those who have not received their Aadhar number yet can quote their Aadhar application reference number in the ITR form for this year.

ITR 1 Sahaj form has been rationalised and cut down to fewer pages than the old 9-page forms. Further to changes in the ITR-1 Sahaj form, the ITR 2 and ITR 3 forms has been modified as well. The new ITR 2 form will be applicable for the individuals and HUFs who does not earn from any proprietary business or profession. The new ITR 3 will be applicable to those individuals and HUFs who earn through proprietary business or profession. The new ITR 4 form will be applicable to the business and profession under presumptive income category.

The impact of this strategy:

These new ITR forms and the rule for declaring cash transaction over 2 lakhs during the demonetisation period is an initiative taken by the government purely to trace the tax evaders. The IT Department will scrutinize ITR forms by matching details with PAN linked account to trace all the tax evaders. In this way, all the tax evaders who had settled down black money through credit card and loan payment will be traced now.

- Support OpIndia -
Support OpIndia by making a monetary contribution

Latest News

Corona pandemic and the future of global trade

As we battle the current situation, it is imperative that we start thinking of measures to prevent a repeat of such situations in the future.

Kabul terror attack:Last nail in the coffin of anti-CAA protests?

The barbaric attack comes barely two and a half months after the vandalisation of Gurdwara Nankana Sahib, the birthplace of Guru Nanak Dev, by a violent mob in Pakistan.

क्या कोरोना का फैलना एक संयोग है या फिर एक प्रयोग?

ये बात अचंभित करती है कि चीन आज दुनिया के लिए खतरा बन चुका कोरोना वायरस को सुरक्षा के लिए ख़तरा नही मान रहा है। जबकि 2014 में इबोला वायरस को संयुक्त राष्ट्र परिषद ने ख़तरा मानते हुए रेजॉलूशन भी पास किया था। 

The truth unsaid

There are story writers who sign any contract for writing rubbish. They may be paid in dollar or in rupee, cash or...

COVID-19, एक शांतिपूर्ण युद्ध

यह एक ऐसी जंग है जो सिर्फ घर पर बैठकर और सोशल डिस्टैन्सिंग से ही जीती जा सकती है। हमें ये 21 दिन स्वयं को व अपने परिवार को ही देने हैं तथा सरकार का पूरा सहयोग करना है।

Let’s convert this adversity into opportunity!

In 1665 Cambridge University temporarily closed due to Bubonic Plague. Sir Isaac Newton had to work from home and he used this downtime to come up with calculus and theory of gravity.

Recently Popular

Muslim leadership in India has to step in the fight against Covid-19

If the virus manages to pester in the community due to stupid actions of a few, it will impact all of us.

Supreme court may need to tweak its order on limitation

21 days of lockdown and the Supreme Court of India

Textbooks or left propaganda material?

It seems like communist and left wing academicians have pledged to create an army of comrades.

Can 1.7 Lakh Crore Garib Kalyan Yojana Contain the Economic Impact of Wuhan Virus?

In this Health Emergency food and health services are the basic need for every one. We have to feed our vulnerable people.

क्या सच में? जी हाँ सच में।

लॉकडाउन के बीच दुकानों अनावश्यक भीड़ बढ़ाना और राशन की जमाखोरी करना संकट को ही आमंत्रित करता है। यदि हम घर पर रहकर दाल रोटी जैसे सामान्य लेकिन पौष्टिक भोजन में काम चलाएंगे तो सोशल डिस्टन्सिंग से हम इस चीन वुहान वायरस की कड़ी को खत्म कर सकते है।