income above 10L will be reported in ais if i am not wrong
for merchant receiving money by upi
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Wealth tax: Keep it simple, tax the 177 dollar billionaires in India
- Thread starter theglobalinvestor
- Start date
for merchant receiving money by upi
I
I think @NOOBY means these are bank account transactions vs cash transactions and there is a digital trail toh it's easy to catch, I don't know if banks send all this info to govt. Or maybe its above a certain amount only but it won't be a hard thing to add in the future, making whatever they earn taxable (if not already
There's no such requirement.
oh okay
but anyways upi means a digital footprint which makes it easier for itr to find if taxes evaded
True. Still I think IT department wouldn't just consider all UPI transactions as your income.
This is the thing.. if the banks do not deduct TDS for UPI merchants.. till then merchants will not look into the ITR and all...
Also there is no way for IT department to connect with small merchants as mostly they would not have any account on income tax portal so no detail of email address or mobile number...
Only way to make them come into income tax scenario is by deducting TDS at Bank level for translation crossing xyz level... That also they will by pass by changing QR codes when the transaction limit is almost reached.. because they usually take account into their normal saving accounts .. i believe..
Also as soon as Bank starts deducting TDS they will move away from UPI
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atleast if the merchant doesnt end up paying his incxome tax or gst he is bound to pay mdr
his is why cards are better
atleast if the merchant doesnt end up paying his incxome tax or gst he is bound to pay mdr
But cards are dead for almost all UPI txns.. not all UPI users have Rupay CC.. only way to bring these merchants under taxation is to make some taxation rule around UPI payments for merchants..
i meants pos card transactions.
i dont even go to shops where there arent pos .
there are road side thelas in my area who earn 30K+ daily.. so only QR code based payment is supported.. there are lot many thelas like this in India..
@rp0703 , Thanks to @xywowowvw and @navam and they have already summed up what I was trying to say.. this is what I was trying to say too
If required, Govt. can start asking banks (and 3rd party apps) to declare all merchant details and transaction info and make it taxable Once the income goes above a threshold
Like banks cut TDS on FD interest, the same can happen (and AIS can definitely show income even if Multiple QRs are linked to separate individual bank accounts)
There is footprint that the person is earning so and so amount
If required, Govt. can start asking banks (and 3rd party apps) to declare all merchant details and transaction info and make it taxable Once the income goes above a threshold
Like banks cut TDS on FD interest, the same can happen (and AIS can definitely show income even if Multiple QRs are linked to separate individual bank accounts)
Everything can be tracked very easily on the basis of PAN. You need to provide PAN card for most things these days.
merchant account required your pan and gst for a higher limit of acceptance and someone accepting more than 30k a day on merchant qr will have it linked to his pan/gst
If daily sale is 30k+ then yearly sale will be 1 Crore+. They should already have a GST registration.
they do not
because their buinsess isnt a registered one
its doesnt have a registered address or something
Right, this is case with so many small vendors.. thela's / small restaurants
and tackling this issue is much harder
due to politics
But merchant service provider does not allow that much transaction without asking for gst details. May be they are not using merchant qr instead they use qr avilable from the bank.
i believe usually it's the normal accounts QR .. that's the reason they will tell you use this and don't use this QR.. and the QR from the workers accounts and other family members account can also be used..