Forget bank accounts, PM Modi will keep an eye on your social media accounts too
Jul 28, 2017, 12:55 IST
Paying little tax and flaunting your vacation pictures and new cars on social media accounts? Well, tax officials may just ring your door bell.
Tax officials are not only going to keep a track on your bank accounts but if you are a tax evader, they will also follow your social media accounts such as Instagram and Facebook.
From August this year, Prime Minister Narendra Modi's government will take information from all kinds of sources and match the pattern to income declaration and spending.
Bloomberg quoted people in the know how saying the officials will be able to spot those who pay too little tax without raiding offices and homes as they currently do.
This will be done through ‘Project Insight’, which has been built over seven years at the tune of Rs 10 billion.
This will run along with the biometric programme and keep a tab on tax evaders.
"Data analytics is the way forward for tax administrations across the world. This will also put an end to harassment by tax officials as there will be no public interface. Perceived randomness in scrutiny will come to an end," Amit Maheshwari, managing partner at accountancy firm Ashok Maheshwary and Associates, told Bloomberg.
India will follow the footsteps of countries such as Belgium, Canada and Australia that are already using big data to unearth tax evasion that may have gone undetected without technology.
Bloomberg reported India's efforts resemble the U.K.'s 'Connect,' which is estimated to have cost some 100 million pounds. Since its inception in 2010, it has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue and the number of criminal prosecutions has risen to 1,165 from 165 a year, the London-based Institute of Financial Accountants said in a December 2016 report.
"Safeguards are must. It has to be seen how effectively data, which has become invaluable, is used for governance," Rahul Garg, head of direct tax at PwC India, told Bloomberg.
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Tax officials are not only going to keep a track on your bank accounts but if you are a tax evader, they will also follow your social media accounts such as Instagram and Facebook.
From August this year, Prime Minister Narendra Modi's government will take information from all kinds of sources and match the pattern to income declaration and spending.
Bloomberg quoted people in the know how saying the officials will be able to spot those who pay too little tax without raiding offices and homes as they currently do.
This will be done through ‘Project Insight’, which has been built over seven years at the tune of Rs 10 billion.
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"Data analytics is the way forward for tax administrations across the world. This will also put an end to harassment by tax officials as there will be no public interface. Perceived randomness in scrutiny will come to an end," Amit Maheshwari, managing partner at accountancy firm Ashok Maheshwary and Associates, told Bloomberg.
India will follow the footsteps of countries such as Belgium, Canada and Australia that are already using big data to unearth tax evasion that may have gone undetected without technology.
Bloomberg reported India's efforts resemble the U.K.'s 'Connect,' which is estimated to have cost some 100 million pounds. Since its inception in 2010, it has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue and the number of criminal prosecutions has risen to 1,165 from 165 a year, the London-based Institute of Financial Accountants said in a December 2016 report.
"Safeguards are must. It has to be seen how effectively data, which has become invaluable, is used for governance," Rahul Garg, head of direct tax at PwC India, told Bloomberg.
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