I-T lens on use of multiple PAN cards in weddings, big purchases

economictimes.indiatimes.com:

tax experts and industry insiders said, citing the central action plan of the Central Board of Direct Taxes for fiscal 2023-24. Sale and purchase of goods or services exceeding ₹2 lakh in cash must be reported on form SFT-013 by the seller.

As per the board's plan, details of which have been shared on some tax platforms and are being discussed in industry circles, such transactions need to be inspected closely since it has noticed rampant circumvention of this provision. According to the document accessed by industry insiders, high-value consumption expenditure needs to be verified with information about the taxpayer available with the department and, therefore, it is imperative to identify the sources which could be involved in possible circumvention, such as hotels, banquets, luxury brand retailers, designer clothing stores and IVF clinics.

«Such sources will have to be identified and a verification exercise could be conducted by calling for information in a non-intrusive manner,» the document states. «Considering that IT and the related service sectors are adversely impacted post-Covid in view of multiple local and global developments, the government is trying to leave no stone unturned in widening the taxpayers base by tapping the sectors that have seen unprecedented boom and super profits after the extraordinary pandemic situation on account of heavy spend (termed widely as revenge spending) as a one-time opportunity,» said Rahul Garg, managing partner of tax and regulatory consultant Asire Consulting.