Now there will be a tough time for the Income-tax defaulters as there are no chances for them to flee by changing there address. As in the latest term of law and regulation, the government has taken strict action towards the income tax defaulters. Now in the latest terms of rules, the government has given the liberty to the income tax department to access the database of banking, insurance and municipal corporations to find the income tax defaulters.
This move would help the income tax department in finding out the lost and underground tax defaulters and taking due taxes from them. Till now, the tax department was sending the default notice to their PAN card address which was not resolving the actual motive of the notice. The reason was that many of the tax defaulters had changed their address and did not bother to update there address while many of them intentionally do so to evade the taxes.
A senior tax official stated that the finance ministry recently gave nod on the pooling of database from various government sources in order to strengthen the departments reach to the tax defaulters. Through this, now the income tax department can fetch the database of a tax default from various sources including banking company, co-operative bank, India post, insurance company, agricultural income return, and financial statements.
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The address of the assessee can also be taken from government records in which the government records means where the taxpayer is registered i.e. driving licence, voter ID etc. The decision has been taken by the Central Board of direct taxes (CBDT).
