IT Department asks travel agents to give details of transactions over Rs 1 lakh

Airlines — By on August 16, 2014 at 9:34 am

The Income Tax (IT) Department’s circular asking travel agents to pass on details of individual and corporate customers who spend over Rs. 100000 on tickets has put the agents in a dilemma, as it could amount to breaching client privacy. The circular, dated July 1, has surprised those business as it does not restrict the information sought to cash payments alone.The circular clearly states that payments on ticket bookings exceeding Rs one lakh, made via cash,cheque, credit cards, Real-Time Gross Settlement (RTGS) or demand draft, will all have to be communicated to the tax authorities.The circular has given agents a month’s time to report details to the Department.Travel agents, who have been pressing for higher commissions on bookings, plan to approach the I-T Commissioner on the issue, as they feel clients will not be happy with such information being passed on to the IT Department. “Corporate houses will stop booking through agents and instead start booking online, as it is not binding on airlines and online portals to pass on the information.It is reported that a similar circular had been issued by the government in 2010-11.Tr a v e l a g e n t s w a n t t h e I T Department to seek this information from the airlines or the International An IT official, who declined to be named, said the circular had been Department. issued to keep a check on inflated billing and tax exemptions sought on Leave Travel Allowances (LTA) by people

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