Why hiding taxable income from IT department can lead to trouble

Technology, especially its tools such as data analytics and artificial intelligence, is ending the heydays of exploiting information gaps to hide income from the taxman. Tax authorities are detecting mismatches in tax returns using tonnes of information about large transactions from banks, mutual funds, companies issuing shares, stamp and registration departments of states and sounding alerts about possible tax evasion, with different wings of the revenue department, direct tax, indirect tax and customs sharing data. However, the nationwide drive to find evaders has also given a free hand to corrupt officials to exploit the system with arbitrary notices and demands. Small and large businesses are at the receiving end of the taxman's hounding, threats and at times even violence. Watch the video for more.

Also Read: Indirect tax collection rises 12.3% to Rs 10.7 lakh cr in FY21