CA Sansaar
Income Tax Dept Deploys Non-Filer Monitoring for High-Value Transactions
Print
The Income Tax Department has intensified its efforts to expand the tax base by closely monitoring high-value financial transactions conducted by individuals and entities that have not filed income tax returns, Parliament was recently informed.
To support this initiative, the Central Board of Direct Taxes (CBDT) has introduced a Non-Filer Monitoring System (NMS). Leveraging advanced data analytics, the system identifies individuals and entities engaging in substantial financial transactions without corresponding income tax filings, the Finance Ministry stated in response to a Rajya Sabha query.
The Finance Ministry explained that the NMS consolidates information from multiple third-party sources, including banks, financial institutions, registrars, and other reporting entities. This encompasses data from Statement of Financial Transactions (SFT), Tax Deducted at Source (TDS), and Tax Collected at Source (TCS) submissions.
After thorough analysis, the system enables the Income Tax Department to detect instances where income may have remained unreported despite significant financial activity.
To support this initiative, the Central Board of Direct Taxes (CBDT) has introduced a Non-Filer Monitoring System (NMS). Leveraging advanced data analytics, the system identifies individuals and entities engaging in substantial financial transactions without corresponding income tax filings, the Finance Ministry stated in response to a Rajya Sabha query.
The Finance Ministry explained that the NMS consolidates information from multiple third-party sources, including banks, financial institutions, registrars, and other reporting entities. This encompasses data from Statement of Financial Transactions (SFT), Tax Deducted at Source (TDS), and Tax Collected at Source (TCS) submissions.
After thorough analysis, the system enables the Income Tax Department to detect instances where income may have remained unreported despite significant financial activity.
Category : Income Tax | Comments : 0 | Hits : 405
Comments