This time, due to the lower tax deducted at source (TDS) of many individuals for FY20, Income Tax authorities have sent notices to several taxpayers. The reasons cited in notices is that while some taxpayers have not paid the apt tax on interest that is earned by them others have paid lower tax on credit card expenditure that is more than 1 lakh.
However, the facts and circumstances of the nearby future are difficult to handle. The reason being, as per informed individuals who are updated about tax compliances, the notices can be in bulk/large numbers as the new intelligence system of the Income Tax Department has automatically flagged post of probable tax liabilities assessing high-value transactions that are being done by taxpayers.
“With more than 6 crore assessees in India, the scope of mismatch will be huge and expect a large number of assessees getting such notices,” said chartered accountant Atul Gupta, central council member of the Institute of Chartered Accountants of India.”
The modus operandi of the Income Tax Department has become more advanced since July 2019 – The Income Tax Transaction Analysis Centre (INTRAC) has become operational. It uses Data Analytics – a technique that automatically finds the information that is a mismatch between information provided by form 26AS of the taxpayer and the information provided by stakeholders such as financial institutions, banks, and so on.
