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With Reach To More Data, I-T Dept Will Track Defaulters Down

With Reach To More Data, I-T Dept Will Track Defaulters Down

With Reach To More Data, I-T Dept Will Track Defaulters Down
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The government has amended rules and empowered the taxman to use banking, insurance and municipal corporation's database to obtain the address of a “hiding” or an “untraceable” income tax defaulter for the issuance of notices or summonses to them and extract due taxes. Till now, tax authorities could only issue a notice to a defaulting or erring taxpayer according to the address provided by them in their PAN (Permanent Account Number), the ITR (income tax return) or any tax-related communication.

This address database was not helping I-T authorities as, they say, the assessee either genuinely changed their address and did not notify them or cleverly went into hiding to evade due taxes.

A senior tax official said an amendment in income tax (I-T) rules was recently notified after obtaining sanction from the finance ministry, and it allowed the taxman to obtain and use the address of an assessee available with the "banking company or cooperative bank, India post, insurance company, the returns of agricultural income and the statement of financial transactions (SFT)”" This also includes address of the assessee (individual or company) present in the "records of the government" and that available in the database of the "local authority", the officer quoting the amendment notification of December 20.

The tweaking in the rules has been carried out by the Central Board of Direct Taxes (CBDT), the policy-making body for the Income Tax Department.

The amendment was necessary as the department, in a number of cases where taxes worth crores of rupees are stuck, was not able to "trace" certain assessee, the official said.

With inputs from Housing News

Last Updated: Wed Dec 27 2017

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