NEW DELHI: If you splurged on something really expensive or made an enormous investment recently, rest assured your accounts won’t be opened up for scrutiny by the income tax department as long as these can be squared with your declared income.“Scrutiny will be based on specific information,” a senior income tax official told ET. In other words, big transactions will no longer automatically qualify a person for scrutiny. The focus will be on limited scrutiny based on information with the department rather than a general one. Tax department should not raise the compliance burden of salaried taxpayers , whose taxes are assiduously deducted at source. A modern networked tax administration must be equipped to use big-data analytics to catch the big fish who swim outside the tax net.

Source: Economic Times May 15, 2017 20:26 UTC