Income tax: The Income Tax Department can ask for accounts of your wheat, rice, pulses, beauty products, spas and restaurant bills etc. If you make this mistake, then the Income Tax Department will have to give account of one thing. The Income Tax Department is investigating everything in many cases. As part of the scrutiny process of the Income Tax Department, an assessing officer (AO) sought complete details of his month ration, clothes, social events, transport costs, insurance, gifts and other daily expenses from a taxpayers under Section 142 (1) of the Income Tax Act. Usually, such a close investigation is only in 1% of cases.
Why are information sought in such details?
According to sources, Income Tax Officers can ask for such information when the declared income of taxpayers does not match his standard of living. If a person’s standard of living is made high, but cash is not seen or expenses appear accordingly. Then the Income Tax Department may suspect that some of your income is undeclared or unaware of which you have not told Sarakar.
What kind of expenses were sought?
The official said that wheat flour, rice, spices, oil, gas, electricity, clothes, shoes, polish, haircuts, beauty products, perfume, spending, social events, students charge, books, fare, car driving, car insurance, health insurance, building cost, building cost, building insurance, life insurance, spending a relative and other The expenditure asks for complete information about the expenses of social program and similar everyday expenses.
Is the expenses of every taxpayers being investigated?
No, the Income Tax Department does not check the personal expenses of every taxpayers. But if a person’s expenses are more visible and cash withdrawal or bank transactions are very low, then it can be a red flag for tax authorities.
What is the purpose of the government?
The government is investigating cases where the source of money may be suspected. If a person maintains high living standers level without taking out more cash, then it is suspected that he is not disclosing some of his income properly. This action of the Income Tax Department is mainly being taken to detect undeclared cash and benami transactions. However, this is not a matter of concern for common taxpayers, but it can be a warning for those who do not declare their expenses and income properly.
Punjab National Bank customers should do this work immediately, otherwise the account can be closed