The Indian government might make the PAN card mandatory for overseas travel as suggested by the Institute of Chartered Accountants of India. Government is already taking all the possible steps to check the bigger financial transactions across the country. ICAI has suggested the government to make the PAN mandatory to bring all the high value transactions under the scanner. The body also recommended widening the scope of filing of tax returns so that the frequent international travellers should be brought under its ambit.
People travelling frequently to show PAN for flight bookings
A person who travels abroad twice in three years or thrice in five years or more than that should file the income return. ICAI want to check whether such persons undergoing high transactions file the income tax returns or not. The institute also wants to bring all the persons making high-value financial transactions under its scanner. For example, the persons paying an yearly school fee more than Rs.72,000 should file the income tax returns.
Government to Audit all the Banking Transactions
Also, the government is taking measures to check all the banking transactions that come under the TDS slab. Now all the banking transactions are will be audited by the government to calculate the amount of tax. It is mandatory for the persons having more than Rs.30,00,000 in their current account to file the returns. Similarly the withdrawals above certain limits should also be included in the annual statements of transactions. Moreover, people making any kind of higher financial transactions such as online shopping, funds transfer or buying online holiday packages should file the returns with the department.
Airlines to share high transaction details with IT Dept
Now the ICAI has suggested that persons traveling overseas should be asked for PAN number while booking ticket so that more higher transactions can be brought into the taxation data system. ICAI also requires the Airlines companies to share such information with their accessing team. The institute also suggests that an independent audit agency should be make the audits of all the TDS returns filed by people with the IT department. This will make the department sure that the TDS returns filed are correct and up to the mark.
Source: Indianexpress.com
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