Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Wednesday, 7 December 2016

From UPI to UTI



Of late, UPI ( Unified Payment Interface ) is talk of the town


It is high time , we also start talking about UTI ( Unified Transaction Interface )


Without naming it as such , Income Tax Department has already started compiling and analyzing , high value sales / purchase transactions , to figure out instances of suspected tax evasions


IT recently sent out notices ( Emails ? ) to some 7 lakh parties involved in 14 lakh high value non-PAN transactions, asking them to furnish their PAN details


Under several laws / rules / regulations , IT requires various agencies / entities / individuals , to furnish a lot of information whenever money changes hands


Following are a few examples :

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Who must report ?   :  Banks / NBFC / Post offices

What  ?                   :  Time Deposits ( if totaling Rs 10 L or more in a year )

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Who must report ?  :  Companies / Mutual Funds

What  ?                  :  Purchase of shares / Mutual Fund units (if Rs 10 L or more in a year )

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Who must report ?  :  Professionals / Businessmen

What  ?                  :  Cash receipts exceeding Rs 2 L from any person for sale of
                                goods / services

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Who must report ?  :  Jewellers

What  ?                  :  TCS ( Tax collected at Source ) for sale of bullion exceeding Rs 2 L or
                                jewellery exceeding Rs 5 L in cash

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Who must report ?  :  Any Seller

What  ?                  :  Sale of any other Goods / Service exceeding Rs 2 L

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Who must report  ?  :  Property Buyers

What ?                    :  TDS ( Tax deducted at Source ) for purchase of property with a value
                                 exceeding Rs 50 L ( to be reported before paying the seller )

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Who must report ?  :  Person making any payment

What ?                   :  Lottery / Game winning prizes exceeding Rs 10,000
                                ( to be reported before paying the winner )

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Who must report ?  :  Buyer

What  ?                 :  Quote PAN while buying / paying / depositing ,

                               *  Property exceeding Rs 10 L

                               *  One time payment at hotels / restaurants, exceeding Rs 25,000

                               *  Depositing cash exceeding Rs 50,000 in a day with a bank

                               *  Purchase of Foreign Currency exceeding Rs 50,000


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Who must report ?  :  Seller

What  ?                  :  Verify PAN and furnish a statement to IT department on

                                transactions

                                beyond a certain threshold

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Who must report ?  :  Banks / Mutual Funds / Companies / Registrars

What  ?                  :  Annual Information Report ( AIR ) on high value 
                                 transactions

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{ Source : Maulik Madhu / Business Line / 05 Dec / Government on Data Trail }

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Considering the effort involved in compiling / collating and analyzing such a massive data , coming in continuously from lakhs of sources , it was natural for the IT department to make use of computer based BIG DATA analytics , to narrow down those suspicious cases


In our goal to make India , a LESS CASH economy , UPI / AEPS ( Aadhar Enabled Payment System ) , was an important FIRST step


But UPI / AEPS , just does NOT cover those sale / purchase transactions which take place using Credit / Debit cards and private brand Mobile Wallets !


To ensure that these transactions too get into the database of the Income Tax department , I suggest following :


STEP  #  2

All other PRIVATE brand Mobile Wallets ( Paytm / MobiQuick / ItzCash / FreeCharge etc ), must be integrated with UPI, so that the sale / purchase TRANSACTION DATA generated through use of such private mobile wallets too gets integrated into the COMMON database of the Income Tax department


STEP  #  3

All Card-Swipe / PoS machines must be UPI / AEPS compliant, so that all sale / purchase TRANSACTION DATA generated through use of all CREDIT / DEBIT cards, too gets integrated into that COMMON database of IT


STEP  #  4

All sale / purchase transactions by all other Electronic Fund Transfer Network ( EFTN ), too must be also transmitted / deposited , into this COMMON DATABASE of TRANSACTIONS


IN  NUT-SHELL  :

All sale / purchase transactions of any kind ( goods or services ) , MUST all get into a COMMON / CENTRAL database , through introduction of a UTI ( Unified Transaction Interface )


UPI + UTI = " Less Cash " + " Less Evasion " + " Less Black "


I request Shri Arun Jaitley-ji to consider my suggestion

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08  Dec  2016

www.hemenparekh.in / blogs



                                 



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