All cash payments of over Rs. 2 lakh for paying loans and credit card bills during the 50-day period post demonetisation will have to be disclosed in the new one-page Income Tax return form. The form has a new column for providing for declaration for any deposit of over Rs. 2 lakh in bank accounts made during November 9 and December 20, 2016.
This column is also to be used for declaring cash payments in excess of Rs 2 lakh for repayment of any loan or settlement of credit card bills during this 50-day period in a bid to catch tax evaders.
This move is being done to collate the data of cash payments made in excess of Rs. 2 lakh with the returns filed for a particular person, to match the income profiles with the cash payments made. With concerns of unaccounted cash or black money being used to settle bills after credit cards were used to make heavy purchases. It could also be that black money could have been used to repay loans.
The new column of cash deposits would not be there in the ITR from next year onwards.
Uttar Pradesh Chief Minister Yogi Adityanath has set a precedence which is now being emulated by other Chief Ministerial candidates of other states. Congress is now trying to woo voters for the upcoming elections by promising farm loan waiver if the party will be voted to power. Gujarat Congress president Bharatsinh Solanki has stated this.
Yogi Adityanath decided to waive off loans worth over Rs 36,000 crore in Uttar Pradesh in its first cabinet meeting. It waived loans of over 2.15 crore farmers totaling Rs. 36,359 crore.
The Congress party is trying to gain popularity by using the loan waiver card in seeking votes for the Assembly elections next year. It has been 20 years since the Congress has come to power in Gujarat.
Earlier, Solanki had promised to set up special economic zones in the tribal districts of Gujarat. He had led Congress's Adivasi Adhikar Yatra at Dahod in Gujarat. Dahod is a tribal-dominated district of the state.
Speaking at Dahod he early this week, Solanki had said that the Congress was confident of securing a two-third majority in the 182-seat Gujarat Assembly in the next year's election.