Hiding income? Taxman all set to get you
Income tax (I-T) return forms are set to turn pink for those making false declarations to conceal profits, reports Manish Pachouly.india Updated: Jan 29, 2009 14:32 IST
Income tax (I-T) return forms are set to turn pink for those making false declarations to conceal profits.
The I-T Department is going through the workings of a system automation programme that will detect anomalies, if any, in a tax return filed by an assessee. Likely to be operational by end of the year, the system is to be introduced as part of an ongoing restructuring process in the department.
I-T officials said the system would be able to minutely analyse the return, compare it with returns filed in previous years and cross-check it with other information received about the assessee.
A pink return form will then be sent to the assessee picked by the computer because the details furnished by him did not add up right, and it will give him a chance to come clean.
If the assessee accepts he made a mistake by putting the true figures in the pink form, he can get away with simply paying the tax with interest.
“If an assessee refuses to accept it (pink form), his case will be taken up for scrutiny,” said a senior income tax official, preferring anonymity because the restructuring process was still not complete. “After scrutiny the assessee will be asked to pay heavy penalty and his case will be taken up for prosecution.”
Officials said work on the system began in December and a private consultancy firm had helped the department in preparing the report on the overall restructuring process.
Once through, the “bulk operation division” of the I-T department will handle the system. The division will be based in five cities; besides the city, Delhi, Bangalore and Kolkata, one more city will be chosen from among those in the central region.
Officials said the upgrade would also minimise the interaction between tax officials and assessees, which would keep corruption under control.