Taxpayers, think twice before posting pictures of luxury items online!
What's the story
Taxpayers will now have to be careful of posting about luxury cars and other such items on social-media networks like Facebook, Twitter, and Instagram.
Income Tax Department would launch "Project Insight" next month to track taxpayers' online accounts for tracing the black money.
Project Insight would use big data analytics for matching social-media information and analyze mismatches between people's income declarations and spending patterns.
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Project Insight beta-testing is on: I-T official
In 2016, I-T Dept roped in L&T Infotech for implementing Project Insight aimed at boosting the non-intrusive information-driven approach for strengthening tax compliance. An I-T official stated, "Currently, beta testing is on, and the integrated platform for Project Insight should be launched by next month."
Details
About I-T Department's Project Insight
I-T Department initiated Project Insight for data mining, collection, collation, and processing of such information for widening and deepening the tax base.
With the help of the information technology-based project, I-T officials can monitor high-value transactions and curb black money circulation and improve tax compliance.
It would also be helpful in implementing Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS).
Project
Using technology for quicker processing of data
Project Insight would deploy technology for collating government databases of I-T forms, I-T Returns, TDS/TCS statements, and Statement of Financial Transactions by financial institutions.
Under the project, the department would also set up a new Compliance Management Centralized Processing Centre (CMCPC) for managing the campaign, preliminary verification of received data, generating bulk letters/notices to tax violators, and follow up with them.
Govt's Crackdown
Government's initiatives for unearthing black money
Project Insight is part of the Centre's steps for unearthing undeclared tax or illegal wealth.
Other such initiatives include "Operation Clean Money" for collecting and analyzing cash-transactions, identifying high-risk cases, and e-verifying suspect tax-evaders, apart from the demonetization of old Rs. 500 and Rs. 1000 notes.
To get a 360-degree view of taxpayers' income/assets, the Centre even made linking of PAN with Aadhaar compulsory.