The Government of India will launch project insight to sniff out tax evaders from the information posted on social media.
Recent reports state that Indian Government will build up a warehouse of virtual information collected from social media. Till now, Income tax department has just collected information from traditional sources like banks. Starting next month, this project insight will help Income tax officials by providing information from social media data base.
“Officials will be able to spot those who pay too little tax without raiding offices and homes as they currently do,” the report states.
This project insight is essentially a database which provides information on social media with extensive search and matching facilities. Income tax officers can estimate the expenditure and can co-relate with the income statements. This new regime is expected to roll out its operations starting this financial year itself.
The government has taken many such anti-evasion measures in the past too. Linking tax payers PAN with biometric identifier Aadhaar aims to prevent tax evasion using multiple PANs. The nature of expenditure is also will be under surveillance and if it is compliant with the declared income of the assessee.
Prime Minister Narendra Modi revealed that over two crore people went on foreign trips in the earlier year. Out of which only 32 lakh people have declared their income above Rs 10 lakh.
Earlier, Modi had declared that 37,000 shell companies are included in tax evasion have been detected. More than three lakh firms found suspicious dealings post demonetization.
Other than this project insight, Government is trying for automatic tax information exchange regime between India and Switzerland.