CBDT To Use PAN-Based Intelligent Data Mining Tool To Check Tax Evasion
I have long wondered why our government doesn’t use some PAN-based information for finding out financial status of individuals. The tool would not only simplify the taxing procedure but would also help in quick tax redressal.
As per the latest report, the Central Board of Direct Tax is now ready to launch its new data mining tool working on PAN-based data next year. The tool will be called as Income Tax Business Application and will allow the authorized personnel to access all PAN related data about any taxpayer in India.
This tool when ready will greatly improve the data mining and business intelligence of the tax department by incorporating human intelligence collected on any person or organization within its database.
“The Income Tax Business Application, once ready, will vastly improve data mining and business intelligence of the department and the taxman,” said Anita Kapur, Chairperson of Central Board of Direct Taxes.
“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 entity,” she added.
The taxmen can then use this information related on PAN and hence put a check on tax evasion by individuals and organizations. According to Anita Kapur, the tax department is doing it to make the process of paying taxes simple and also for providing quick redressal to problems of tax payers.
This tool will ensure that more and more tax evaders pay their dues within time to the tax department. It will also help in improving the image of tax department in front of regular tax payers who think that the current taxing system is unfair as the department isn’t doing anything to curb tax evasion.
“If you do not take action against evaders, then the message going out is the tax department is allowing people who should be in the tax net to remain outside. Tax evasion is not only a menace; it also spoils the compliance culture because those who pay taxes feel the system is unfair,” she added.
She also said that this tool will ensure that a person who is outside the tax net will continue to remain outside. So, the common has nothing to worry about.
“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,” she explained.
Anita Kapur also mentioned that a large number of people don’t file tax returns and the department will not let off the tax evaders. They’ll have to pay penalties for evaded tax and face prosecution.
This move from the tax department will result in a significant improvement in the revenue of the government. More and more people will file their taxes on time and the thought of evading taxes would strike fear into the heart of chronic tax evaders.