Big Data can at times spell trouble for taxpayers

The tax departments initiative to harness the power of big data and automation has already provided several benefits to taxpayers. These steps that reduce tax evasion and make life simpler would , in the normal course, have been welcomed by the honest tax payers. It has already speeded up return processing and issuance of refunds. In the normal course therefore honest taxpayers would welcome this initiative if only…… the implementation process was smoother and the tax department officials attitude was not misaligned (they view taxpayers as evaders unless proven otherwise) with the finance ministers stated view of trusting tax payers unless proven otherwise. Harsh’s article in Business Standard today gives specific examples of the Tax officials misaligned attitude and the smaller implementation issues besides the bungled introduction of the new portal.

Prevent NRIs’ PAN from being declared inactive

PANs not linked to Aadhar will be deactivated from April 1, 2022 leading to suspension of operations in the bank accounts, securities/MF accounts linked to such PANs. The tax department has not clarified how they will distinguish PANs of NRIs/OCIs or other persons who may not be eligible to apply for Aadhar and keep such PANs active. The tax department has not provided any facility for NRIs/OCIs to keep their PANs activated by marking themselves as ineligible for Aadhar. Deactivation of PANs will lead to serious consequences for affected individuals and the Income Tax department owes it to them not to wait till the last minute and to come out with a solution well in time. Harsh Roongta’s article in Business Standard today where he outlines that these are not the only tax travails faced by NRIs/OCIs.

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