Companies & Taxpayers Receive Tax Notices Over Data Analytics Results

There are various companies and people who might avoid furnishing the taxes has come beneath the taxman’s lens mentioning an explained investigation upon the grounds of the application of the data analytics and machine learning and robust information sharing amid different tax councils.

The government practised the statistics of the last 2 fiscal years to made the audit checklist. The tax council practised big information analytics in the past years. The tool is used to determine the outliers in any industry and the gap from industry upon the grounds average taxes is practised to find the targets for investigation.

The indirect tax department has provided various notices to numerous people and firms in July post it seems various flaws inside the income tax along with the indirect tax filings.

In the previous times, the direct tax These types of taxes are directly imposed and paid to the government of India. Example of Direct Tax is Income Tax, TDS, Securities Transaction Tax, Fringe Benefit Tax, etc along and the indirect tax administration has been implemented respectively and shall not share the information. But the government’s big information in the previous 2 years has meant that both the council has been sharing the information through each other. This has directed to deeper analysis and more tax notices and scrutiny, industry trackers.

In the current year, the notices have been provided to some lawyers who are outside the range of the indirect tax. The tax notices show that if the recipients come beneath any privileged class like a lawyer, then they must provide some more details for their privilege and not furnish the taxes.

“The tax authorities have been relying on artificial intelligence and data to gather information about tax leakages. While this is certainly good to track tax evasion, unnecessary notices must be avoided to enhance ease of doing business” stated Abhishek A Rastogi.

Read Also: All About Service of Notice Under GST Regime & Income Tax Act

Before that data mining through the tax, the council has revealed that some firms might come beneath invoicing or selling their goods in cash to their customers. As there are various government departments that have begun sharing the information the income tax council has also initiated posts to bought the Benami properties or real estate properties beneath the bogus names. In what seems to be the trigger following the information analytics upon the grounds of the examination. The tax counsel has begun offering the notices to the owner who held Benami real estate properties.

The source stated that the notices are also the outcome of the data mining practice done through the tax council. Before that several government departments has not to talk each other and now they are sharing the information.