No income earners above the threshold would still be filing tax returns
If you thought you can escape filing a tax return in case your income is more than Rs 5 lakh, then think again. You would now need to take a re-look at your bank statements to gauge whether you need to file tax returns.
Under the Union Budget 2019-20, return filing is being proposed to be a mandatory activity for people with high spends.
So, if you have spent more than Rs 2 lakh on a foreign trip, or deposited Rs 1 crore during a year in a current account or even paid more than Rs 1 lakh as electricity bill during a year, then you would have to file a tax return.
This move would ensure that high-value transactions do not go unnoticed.
These moves apart, if your earnings fall below the amount chargeable for tax as a result of rollover benefit of capital gains, then too you would be required to file an income tax return.
The move would affect high income earners having exempt income such as pensioners and farmers or even those who have been evading taxes.The Great Diwali Discount!
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First Published on Jul 5, 2019 02:45 pm