Tax dept comes down heavily on tax dodgers Taxman cometh is what mail today has been telling you during the last several days. Proof of concept came on monday when in a major crackdown on Cheap Pandora Bracelets tax dodgers the income tax department's directorate of intelligence and criminal seek dashed off letters to 35, 170 pan holders listing their high value financial ventures detected through the hi tech 360 degree profiling exercise. Uday ved, senior tax team up with kpmg said,"In india we simply have 3.3 per cent of the citizenry paying tax and filing returns.There are tax payers who make credit card or property deals but do not pay taxes.They should taxed, The taxman's letter contains the summary of the financial connections along with a customised response sheet and seeks to know whether the person has filed an income tax return or not. The finances ministry on monday said,"A nodal cell has been established to capture the response and take follow up action.You might have an online monitoring system to ensure follow up action and track return filing and tax payment of the target segment, The finance ministry further disclosed that the income tax department has undertaken a business intelligence project to identify pan holders who have not filed income tax returns and about whom specific information comes in 148 information codes of annual information return(Air), Central insight Branch(Cib)Data great deals on charms and tds/tcs proceeds. Good relocation Information in the cash transaction reports of the financial intelligence unit india has been included as part of this data matching exercise. This data analysis has labelled a target segment of 12, 19, 832 non filers linked to about 4.7 crore expertise records.Rule based algorithms have been used to name high priority cases for follow up and monitoring. "This is an excellent move by the government.It has become more wary of tax evaders but the it department has to look into the issue on case to case basis, said tax specialist subhash lakhotia. "If a person makes a huge transaction and does not file his returns it may not indicate that he is a tax evader.He can be a rich agriculturist who has sold his land and been sent a big amount.There will probably be a case where an old man has received money from his son. Someone making a huge transaction does not necessarily imply that he has to pay tax.Tax location you pay on your earning.If there is no earning than you will not be liable to pay any tax, he purchased. Immediate need need As through mail today earlier, the cash strapped government had decided to step up the 360 degree profiling exercise of high net worth individuals and big spenders in order to help increase revenue collections and curtail the runaway fiscal deficit. A senior finance ministry official told mail today that the income tax collections are not commensurate with the big ticket expenditure that has been taking place for the overall design on buying real estate, substantial jewellery, contacts in shares and mutual funds, rampant high value credit card purchases and extravagant spending in five star hotels and foreign jaunts by students. Money minister p.Chidambaram has repeatedly emphasised that there is need for a non intrusive tax governing control to enable the tax payer to file his return and pay appropriate taxes. "In case the spending, if on consumption or asset building, exceeds the declared income from various sources the income tax department will ask for learn more from the entity concerned, the state added. The 360 degree profiling would also enable the it department to crack the maze of companies in which the entities often use to evade taxes. This is a scientific and impersonal way of of your home tax dodgers to book.The system which put in place is modelled on the lines of advanced countries such as the us, england, france and uk. Based on sources, the pan card provides the crucial link to the scattered expenditure and your particulars are often assembled at one place to provide the entire picture at a glance. Figures authored by the income tax department show that during the assessment year 2012 13 only 14.62 lakh assessees have declared a taxable salary of over Rs 10 lakh. But bear in mind data mined through click here to see more info about bracelet charms the computer network has thrown up that 33.83 lakh persons made cash deposits of Rs 10 lakh or more in their savings bank accounts in the past year. Apart from this 16 lakh persons made payments of 2 lakh or more against their greeting cards and over 11.91 lakh people had purchased or sold house worth Rs 30 lakh or more.This data bank will now be used to find the tax evaders. Well heeled independent execs such as chartered accountants, individual doctors and lawyers, big shopkeepers and wholesale traders make up the category of income tax assessees who contribute virtually nothing to the nation's exchequer. In senior officials, over fifty percent of india's 3.4 crore income tax payers contribute minor amounts as tax with figures of less than 1, 000 in many cases. This reduces the effective tax base of the united states to around 1.5 crore tax payers composed mainly corporates and the salaried class, In IT officials.