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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