CHETAN RAI, Gangtok 04 Mar:
The Directorate of Income Tax [Intelligence and Criminal Investigation], the nodal agency of the Income Tax Department for strengthening tax database, organized an outreach program on filing of Statement of Financial Transactions and other tax-related issues on here 03 March.
The main objective of the program, it is informed, was to encourage voluntary compliance, identify non-compliance, and promote fair and judicious tax administration. The Directorate, it may be recalled, is tasked with widening the tax base through identification of stop filers and non-filers, and deepening the tax base by providing information for proper selection of cases for scrutiny assessments.
It also collects information relating to financial transactions like investment, expenses, payment of taxes, etc and details of persons who are involved in some specified activities. The mandate also provides for identification and investigation of cases of tax evasion arising out of criminal matters, having any financial implication punishable as an offence under any Direct Tax Law.
In keeping with this role, the Directorate is also keeping a close eye on marriages and hotel bills, Deputy Commissioner Sayantan Banerjee informed the meeting, while adding that there are two main ways to tackle tax evasion – through direct surveys, where the DCI can seize unaccounted for money in cash, jewellery, or certain documents that suggest the money has been concealed, and through gathering information about investments and expenses before conducting searches.
He highlighted that the first approach is a combative process and should be minimized, as it sometimes causes unnecessary harassment to taxpayers, therefore, the Income Tax Department has shifted to the latter approach to stem tax evasions.
16 bank officers from State Bank of Sikkim, Sikkim State Cooperative Bank, and Citizens Urban Cooperative Bank attended the event.
“The Income Tax department is not a policing body, we are facilitators. We want general taxpayers to become more aware so that the department doesn’t cause them any harassment, and they can pay the due tax willingly,” said Ashutosh Rajhans, the Principal Director of the Intelligence and Criminal Investigation wing.
It was informed that the Income Tax Department now has its own AI system that collects and analyzes data, which is then used for tax collection and raising taxpayer awareness.
