New Delhi. Today, India has become the first country in the world where the most money comes from abroad. Indians top the list of those sending money received from foreign jobs or business. Given this situation, if your family members, relatives or friends send money from abroad, then this information may be important for you. In fact, people who receive money from abroad may now come under the scrutiny of Income Tax. The Central Board of Direct Taxes (CBDT) has started investigating cases where an amount of more than Rs 6 lakh has been sent from abroad. If you have also received such an amount, then know what is the whole matter.
The CBDT has decided to take this step to ensure that there is no manipulation of the remittances, such as tax evasion. According to the Economic Times report, the move has been taken after cases were identified where there was a discrepancy between the amount received and the declared income, and irregularities were also found in the Tax Collection at Source (TCS). According to the concerned officials, the CBDT has directed the field formations to start the verification process and investigation of Form 15CC. Form 15CC is mandatory for those who receive remittances from abroad. Data related to this form from 2016 onwards is being collected and will be analyzed.
Who’s on the radar
An official said that a review recommendation was made last year which will soon be made available to the field formations. The move will help the government identify cases where foreign remittances were made but the taxpayer did not report it in his filing. This will prevent tax evasion and ensure that the remittances from abroad are properly accounted for. The board will prepare a list of high-risk cases based on the examination of data after 2020-21. Field formations have been directed to prepare an SOP for identifying high-risk cases and submit a list of such cases by September 30. The government has set December 31 as the deadline for sending the first notice to people with undeclared income.
20% TDS on more than Rs 7 lakh
If you receive money from abroad, it is important to know that 20% TDS is applicable on amounts above Rs 7 lakh. However, if the amount is sent for medical or education purposes, then it is exempted. Through Form 15CC, the person receiving the money from abroad certifies that the said amount is not taxable, otherwise no additional details are required. The authorities have also identified some cases of possible misuse of this exemption.
