CBDT goes for business application to track tax evaders

IT department drive to widen the tax net and to bring in as many as 25 lakh new assesses under the taxpaying bracket every month

GN Bureau | June 17, 2015


#income tax   #cbdt   #tax payers   #pan   #PAN  

With PAN (permanent account number) as reference the Central Board of Direct Taxes (CBDT) is devising a single-window financial information database of taxpayers to profile their source of income and spending. The database will be set up later this year and will be fully operational next year.

It is being named as the Income Tax Business Application (ITBA).  It will help in improving data mining and business intelligence of the department. The ITBA will collate all information based on the taxpayer’s permanent account number (PAN), which will be used as a ready reckoner for the assessing officer before he goes for a search and seizure operation.

This is to ensure that chronic evaders are not able to get away without facing court cases

“We get information from various sources such as tax deducted at source, annual information reports, excise, service tax and value-added tax. But they are all in silos,” said Anita Kapur, chairperson, CBDT.

"We try to ensure that our tax regime remains non-intrusive....but there are certain people or cases against whom intrusive action is required. Because not everybody is willingly compliant. We have the powers of search and seizure under the Income Tax Act...we all know that there is large tax evasion happening in certain cases and we have to use that power of search and seizure (to clamp them down).

"We just don't want to get penalty and unpaid tax from the evader. We don't want to do that. Because, for us, tax evasion is not only a menace in that sense, it is also spoiling the entire compliance culture (in the country) because the people who are tax compliant feel that the system is unfair," she said.

Of the total 3.5 crore returns filed annually, the tax department selects 3,00,000 to 4,00,000 cases for scrutiny, based on risk profiling.

"This (not catching the evader) will encourage a system where a person who is outside the tax system will continue to remain outside the tax system," Kapur said. There was a large tax constituency which is not covered under the Tax Deducted at Source (TDS) regime like for example small traders.

"Such people do not file the return and wait thinking something would be done once the taxman comes calling with a search or a survey. We don't want that message to go," she said.

"Our focus should not be collection and it should be taken to a logical conclusion which is that an evader not only pays penalty (on the tax evaded) but also be prosecuted," she said. 

Kapur also said the department was on a drive to widen the tax net and is aiming to bring in as many as 25 lakh new assesses under the taxpaying bracket every month.

"I am just trying to say that there has to be deterrence against tax evasion. If my officer is not harsh on a tax evader then I think, you would agree, he or she is not doing their job properly. There is a law in place and there is no place for compassion in law. Law has to be forced fairly and evenly," Kapur said.

Comments

 

Other News

Trump’s China setback pushes US to woo India

A week after Donald Trump’s visit to China – the first by an American president in nine years, US secretary of state Marco Rubio arrived in India on May 23 on a four-day visit aimed at resetting Washington DC’s relations with New Delhi and attending the third Quad ministerial meeting.

EU–India FTA 2026: A high‑stakes prescription for Indian pharma and healthcare

India’s pharmaceutical industry stands as one of the world’s market leaders of generic pharmacy with market valuation of USD 50 billion in 2026. Characterised by high volume, low-cost generic manufacturing, with an annual growth rate of 10-12% primarily propelled by exports and domestic demand,

Legends, vignettes and tales from the freedom movement

Robin Hood of Kathiawar and Other Extraordinary Stories from India’s Freedom Movement By The Paperclip  HarperCollins, 348 pages, Rs 499  

Solicitor General Tushar Mehta tells quirky tales from the world of law

The Lawful and the Awful: Quirky Tales from the World of Law By Tushar Mehta Rupa Publications, 336 pages, Rs 995  

Cabinet meet discussed `Ease of Living`, `Ease of Doing Business`

The Council of Ministers has deliberated upon valuable perspectives and best practices relating to boosting ‘Ease of Living’ and ‘Ease of Doing Business’, prime minister Narendra Modi said on Friday.   As he shared details of the Council meeting held the d

India should deepen energy partnerships with Africa

The vulnerability of Strait of Hormuz continues to influence energy politics globally. India is highly dependent on imported crude oil as a significant portion of its oil imports still come from the Gulf ultimately making such disruptions particularly consequential and has immediate economic ramifications


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter