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Noose to tighten on tax truants
July, 19th 2007
The Central Board of Direct Taxes (CBDT) today denied that it was embarking on total profiling of suspected tax dodgers, but indications were that the income tax department will profile assessees in case of a suspicion of huge evasion.

CBDT chairman B.M. Singh said tonight income tax profiling was a standard device adopted as an anti-tax evasion measure.

When there is information about large financial transactions that are unreported or huge tax evasion, attempt is made to bring together all financial information about the person concerned. Information is gathered from sources such as annual information returns, banking cash transaction tax, securities transaction tax, income tax and wealth tax returns and TDS returns, he said.

The object, Singh said, was to construct a financial profile such as income, expenditure and investment of the person.

 
 
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