The Income Tax Department has used data analytics and advanced technology has helped the income tax department recover ₹36,000 crore from outstanding tax demand in the current fiscal and to detect discrepancies in the Income Tax Returns (ITR).
This recovery includes ₹27,000 crore from corporate tax and ₹9,000 crore from personal income tax till December 20. With one more quarter to go, the department expects the number to go up further by the end of this fiscal year to at least ₹50,000 crore.
A Senior Official stated that “the Income Tax department expects the tax recovery to rise as it has already sent several notices to several taxpayers. The notices have been sent to taxpayers whose tax returns reflect a mismatch with their income. The department expects these individuals to file revised returns.”
The department accesses crucial information about taxpayers in the form of data from banks, digital financial transactions, the stock market, and other financial instruments attached to bank accounts and permanent account numbers (PAN).
The Income Tax department analyses this data on a single platform by using AI to build regression models to identify deviations and errors in tax filing. The department separates the returns with deviations and keeps them for further assessment.
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