Tightening the noose for Income Tax evaders:
Good governance needs a constant review & research by the Government on it’s own policies & regulations for making it more effective. The intent is to get the laws & regulations properly implemented in a way that shows up the visible results for people. Working with the same concept, Govt of today in it’s regular mission to catch the Income tax evaders, is planning to come up with an innovative method, by using the Social media.
The idea is to bring more and more people into the Tax net. Today only few percentage of the population is paying taxes honestly. Due to this the revenue needed for developmental and welfare projects by government gets slowed down. People in general find ways to avoid paying taxes. If it is legal way, it is good because it involves investments in different sectors like, PPF, Insurance and many other laid out ways to save income tax. But when people hide
their income by not disclosing it to the authority it becomes a task for the government to find these culprits doing such practices. Intention of such people is to not pay Income tax despite of the fact that they make good money in their life thru business or jobs or whatever they are doing to make their living.
Recent news in media appeared about Income tax department strengthening their team to keep tab on the social media sites such as FaceBook, Instagram etc. to find and pin all such evaders. The idea seems to have clicked to the authority when they see lots of people boasting their pictures of lavish weddings, foreign trips, regular parties, your new luxury car and what not. Same people when file their income tax papers show themselves as meager earner, but otherwise they enjoy their life in a happening way. Profile of such people may be on scrutiny by the department and when concrete evidence of fraud or evading tax is detected suitable action may be initiated. As per some report I-T department has signed up with L&T Infotech to carry on this task. Report says that the strategy is to create 360-degree profile of people who may be a tax payer currently or not and even new or non filers data would be captured and analyzed. With PAN card being mandatory and Aadhar & Mobile number getting acceptability the vigilant team will have ample ways to collect transaction data from their spending. Posts on the Social media sites will only give them further proof to nail down such people whose transaction history they may be tracking. The plan is to sync the transaction data with the declarations of the individuals and book them for income tax evasion. Many
countries such as Canada, Australia, Belgium and others are already using Big Data to check on the tax evaders acts.
People need to be careful about the mismatch between their spending pattern and their actual income tax declaration document. Stringent laws are meant to bring discipline in society. By declaring true income and paying right taxes one can live life tension free as well as feel proud to contribute in nation’s progress as well.