News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 12 years ago
Rediff.com  » Business » Computerised a/cs: I-T tool to track tax evasion

Computerised a/cs: I-T tool to track tax evasion

By Santosh Tiwari
August 23, 2011 14:02 IST
Get Rediff News in your Inbox:

TaxFor long, manipulators have evaded Income Tax and hidden the malpractice under a pile of data recorded in computerised accounts.

The government has now found a system to track the illegal activity.

The Central Board of Direct Taxes is currently in the process of equipping its officials with smart software that will be laid across the country to scrutinise computer-based accounts of tax-payers, according to a senior department official.

The software has a set of standard tools that will run on the data under scrutiny and track manipulation in the accounts for tax evasion, he told Business Standard.

"The software has already been developed. The I-T department officials, who would be using it, have tested it. We have completed the (user acceptance test) within the department," he said.

The department has also successfully conducted the tests on live accounts and checked its efficacy in getting the desired results.

"All the ground work is over. The tool is slated to be rolled out through the country within a a year, so that the standardised system is put in place quickly," he said.

The I-T department is currently grappling with the problem of handling the huge data associated with the electronically

maintained accounts as it becomes difficult to analyse the data for identifying the wrongdoings and tax evasion in a quick and standardised manner.

The official said the software would overhaul the whole scrutiny mechanism by providing specific tools for specific purposes.

Set to substantially enhance the investigating capabilities of the department, it will also standardise the process to be followed in dealing with computerised accounts.

"Another major advantage of this tool is that the seniors will be able to keep a tab on the process followed by the officials in the scrutiny cases," the official said.

"It will bring in homogeneity in handling such cases."

Currently, the tools, method and process to be applied in tackling the computerised accounts for cracking tax evasion is completely dependent on the officials handling a particular case.

The absence of a set procedure makes it difficult for senior officials of the department to identify the lapses.

"The software will streamline the whole scrutiny process, integrate it and bring in transparency in handling of such cases," said the official.

The tool could be used in normal as well as high-profile cases in the first stage. The department was likely to further develop sharper tools for raids, he added.

Get Rediff News in your Inbox:
Santosh Tiwari in New Delhi
Source: source
 

Moneywiz Live!