Foreign visits likely to come under AIR net

RUN-UP TO THE BUDGET

Foreign travels could come under closer watch of the income-tax department from the next fiscal year.

The finance ministry is considering a proposal for inclusion of overseas travel costs of more than Rs 50,000 at a time under the ambit of annual information returns. It is also mulling inclusion of more than Rs 1 lakh cash deposits in post office savings.

AIR is a system for capturing high-value transactions from "third party" sources such as banks, credit card companies and registrars of property.

The AIR system at present covers seven transactions. These include cash deposits of Rs 10 lakh and more, credit card payments exceeding Rs 2 lakh, purchase and sale of property worth more than Rs 30 lakh and purchase of RBI bonds worth more than Rs 5 lakh.

Finance ministry officials said that though travel agents were required to obtain permanent account numbers of clients travelling overseas, the information did not reach the I-T department unless called for.

"If it is included under AIR, travel agents or tour operators would be required to submit the information," an official said.

Finance ministry officials said the Central Board of Direct Taxes had proposed expanding the scope of collecting information either through AIR or through the central information branch.

Also proposed for inclusion in AIR are payment of insurance premiums of more than Rs one lakh, purchase of a car valued at Rs 5 lakh or more and cash payment for purchase of a bank draft of Rs one lakh and above.