Income Tax & Customs – New Policies for Consideration

• HRA has to be streamlined such that PAN card/Bank A/C is mandatory for all rent payment. Some people construct so many houses and then get excessive rent which is avoided by tax payers by showing that they paid less tax. PAN card of the house owner, A/C number and tenant debit A/C should be made compulsory to avoid multiple claims for same rent Or banks should be asked to create a system to payment of rent alone so that income tax department can track. Current limit for PAN card to be provided for HRA needs to be removed and made mandatory for all if PAN card not present at least bank a/c should be asked from house owner.
• Foreign trips of individuals can be tracked through Passport itself and government can come to a conclusion on expenditure based on routes travelled by checking points of immigration. Govt. must create system to track movement instead of asking to list in form 16 as too much noise was raised. Most business men who travel in/out of Thailand, Indonesia, Malaysia needs to be monitored for drug smuggling. Why don’t airports check all baggage when entering into India. If the person has contacts in abroad airports he might have brought it to India but we need to check to check loopholes. Customs duty work based only on inputs and visible evidence like TV but so much severe crimes are there. All connecting flights for international flights to domestic needs to be monitored since the person might not have been checked when entering India and he would have escaped. Baggage monitoring at several airports is in control with Airlines so any mistake will lead to security issues.
• PAN card used for payment at bank terminals should be verified by hitting income tax department database to check photo/name/other details since benami transactions take place with other person numbers mentioned in challan. PAN cards used for train bookings are being used for benami as their listed in the chart. Government must ask Railway to print only partial numbers instead of full text.
• All vehicle purchase must be made to compulsory submit PAN card. Most gifts transactions are by giving vehicles to avoid tax men lens.
• Land purchases are the major benami transactions take place through these but no government has been able to control it. All land transactions if done through banking system should only be considered for approval. No cash transactions should be accepted. All land transactions through banking system using cheque will help track who purchased and then tracked to check if any black money passed through by checking ATM transactions of both buyer and seller. Land transactions registration offices need to have cameras and monitored at income tax officers also other than state governments.
• Big land owners who do farming also need to be brought under PAN card and banking preview. Large mill owners, big shots in rural areas live posh life compared to city people. Separate committee needed to bring out wealth held by certain people in rural areas.