Government is likely to set up a new trap to income tax evaders by using GST data in order to avoid tax evasion.
Reportedly, the Government setting up a new mechanism to avoid tax evasion by using the collected information during the period of GST return filing which is the new tax regime introduced in India from 1st July onwards.
It is necessary to file return of income for every businesses under the new tax regime and it is an easy task to collect information regarding their income status. By using those data the department can easily trace the people who are trying to escape from their tax liability.
Reports said that the project is still in the initial stage and the Government wants to create a data base about the actual income of the companies and promoters that could be matched with the tax returns filed by them and the department also seeking suggestions and data analysis tools from outside technology experts.
This new mechanism will be creating amazing changes in the tax sector and it will be also useful to tax payers for reminding about their tax liability.
