Several companies, individuals get tax notices as data analytics uncovers gaps in filings
Several companies and individuals who may have avoided paying taxes have come under the taxman’s lens following an elaborate investigation based on the application of data analytics and machine learning and robust data sharing between various tax authorities.
The government has used statistics of the last two financial years to create the audit checklist. The tax departments have used big data analytics in the last few years. The tool is deployed to find outliers in any industry, and the gap from industry-based average taxes is used to determine targets for further scrutiny.
The indirect tax department has issued notices to several individuals and companies in July after it found discrepancies in their income tax and indirect tax filings.
In the past, the direct tax and the indirect tax departments operated independently and would not share data.
However, the government’s big data push in the last couple of years has meant that both departments have been sharing data with each other. This has also led to deeper analysis and more tax notices and scrutiny, industry trackers said.
This year, however, notices have also been issued to some lawyers who are outside the gamut of indirect tax.
The tax notices specifically mentioned if the recipient falls under any exempted category (such as lawyers), then they should just supply some additional information regarding their exemption and not pay taxes.
