New Delhi: Income tax department on Tuesday signed a contract with L&T Infotech to implement it’s “Project Insight” for data mining to track tax evaders. The first phase of the project is expected to go live in May 2017.
Income tax has a voluminous database of IT returns, IT forms, TDS or TCS statements, and Annual Information Return (AIR). The department wants to use this information effectively by developing a comprehensive platform.
Thus, the department initiated “Project Insight” to strengthen the non-intrusive information driven approach for improving tax compliance and effective utilisation of information in tax administration.
Under the contract, the Project will be rolled out in three phases. This integrated platform would play a key role in widening of tax-base and data mining to track tax evaders. The new technical infrastructure will also be leveraged for implementation of Foreign Account Tax Compliance Act Inter Governmental Agreement (FATCA IGA) and Common Reporting Standard (CRS).
Implementation of reporting compliance management system will ensure that the third party reporting by reporting entities is timely and accurate. A streamlined data exchange mechanism will also be set up with other Government Departments and exchange partners. A new CMCPC will also be setup as part of the Project for handling preliminary verification.
