ITR Filing: People’s spending pattern indicates that people are not disclosing their income correctly in ITR. The purpose of this may be to pay less tax. The Income Tax Department is keeping a special eye on such people
ITR Filing: These data related to income tax may surprise you. About 7-8 lakh people in India earn more than Rs 1 crore annually, but this income is not reflected in the income tax return. A senior officer of the Income Tax Department told this to Moneycontrol. He told that only 3 lakh high net worth individuals pay tax on income of more than Rs 1 crore. This means that lakhs of people earn a lot but they pay very little tax.
Many people are underreporting their income in ITR
According to the data of the Income Tax Department, in the 3.50 lakh income tax returns filed in the financial year 2022-23, the income of taxpayers was more than Rs 1 crore. It is worth noting that a total of 7.97 crore income tax returns were filed that year. The official said that the spending pattern of people indicates that people are not disclosing their income correctly in ITR. The purpose of this may be to pay less tax.
Tax evasion will be caught through 360-degree profiling
The Income Tax Department is going to be strict in this regard. It is going to use a special technology for HNIs who show less income, which is called ‘360-degree profiling’. Under this, the Income Tax Department will keep an eye on the high value transactions of such taxpayers. This will be tracked through TCS and TDS. The government is also keeping an eye on foreign remittances. Government sources said that even GST data is being monitored to find out the correct income of HNIs.
High value transactions will be detected through TCS/TDS
Tax experts say that governments all over the world are trying to increase the tax base. In this, more focus is on HNI. Ashish Karundia, founder of chartered accountancy firm Ashish Karundia & Co., said that in India too, the government is following the footsteps of other countries. For this, high value transactions are being traced with the help of TCS. The government is also keeping an eye on the purchase of things like expensive watches, sunglasses, handbags, shoes and home theaters. These things worth more than Rs 10 lakh are being tracked.
Data will be analyzed with the help of AI
S Sriram, partner of Lakshmikumaran & Sridharan, said that the government will analyze the data of high value transactions with the help of AI. After that they will be matched with the filed returns. He said that the results of this analysis may not be 100 percent correct, but it will reveal those cases and taxpayers whose expenses are much higher than the income shown in the income tax.
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