In a significant change in approach, notices will not be the first response of tax authorities to individuals and companies with regard to queries relating to expenditure or information that may have skipped a taxpayer’s attention or was omitted while filing returns.
The income-tax (I-T) department is set to adopt ‘non-threatening’ language that asks whether an expense has been accounted for or not rather than the more intimidating officialese that quotes I-T sections under which a notice has been issued. With data mining being systems-driven, authorities are working on ways to ensure the department makes information — such as large-cash deposits or high-value transactions — available to taxpayers well in time for filing of tax returns.
In a significant change in approach, notices will not be the first response of tax authorities to individuals and companies with regard to queries relating to expenditure or information that may have skipped a taxpayer’s attention or was omitted while filing returns.
The income-tax (I-T) department is set to adopt ‘non-threatening’ language that asks whether an expense has been accounted for or not rather than the more intimidating officialese that quotes I-T sections under which a notice has been issued. With data mining being systems-driven, authorities are working on ways to ensure the department makes information — such as large-cash deposits or high-value transactions — available to taxpayers well in time for filing of tax returns.