Smart database to check income tax evasion soon

Smart database to check income tax evasion soon

THE income tax ( I-T) department is setting up a new smart and intelligent database to crack down on tax dodgers, Central Board of Direct Taxes ( CBDT) chairperson Anita Kapur disclosed here on Tuesday.

Once the Income Tax Business Application is ready, it will vastly improve data mining and business intelligence of the department. The database will be set up later this year and become fully operational next year, Kapur said.

It will be a robust database which will include all sorts of financial transactions data of an entity, including human intelligence collected on a person or business entity. The department aims to bring 25 lakh new assesses under the taxpaying bracket every month.

Indicating that tax dodgers are in for serious trouble, Kapur said, “We just dont want to get penalty and unpaid tax from the evader. Because for us, tax evasion is not only a menace in that Smart sense; it is also spoiling the entire compliance culture as the people who are tax compliant feel that the system is unfair,” she told journalists.

Though the department wants to keep the tax regime non- intrusive, it was because not everybody was willingly compliant that IT authorities had to use the power of search and seizure. “There are chances that by witnessing a lax system of tax enforcement, even compliant taxpayers would waver from their duty saying why should they pay taxes when others can avoid it.” Kapur said that demonstrative action by the taxman is required against evaders.

“Otherwise, we would encourage a system where a person who is outside the tax system would continue to remain outside the tax system.” She added that there is a large tax constituency such as traders who are not covered under the tax deducted at source regime.


Taxmen won’t resort to coercive methods to recover dues towards minimum alternate tax (MAT) on capital gains made by FPis and will wait for the Supreme Court order on the issue Assessing officers (AOs) cannot redo their order ( on levying of MAT), but if order is in appeal, then the CBDT can certainly tell them not to take it further, CBDT chairperson Anita Kapur said. The merit of levying MAT on capital gains will be decided by the A. P. Shah Committee and the SC. She made it clear that the government has asked AOs to offer DTAA relief to MAT- hit foreign investors.

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