Warning: Your social Media posts on Instagram, Twitter, Facebook and other social networking sites are under scanner , and this is for a good reason.
Read further to know “Why posting flashy pics of new Bike, cars can lend you in trouble?”
“Why pics of joyful time in exotic resorts and travel are going to hit you soon”.
Answer is Bigdata . our intelligent people working in tax department have figured out that there must be consistency in your “earnings” and “spendings”. To make it easier for you to understand , if you are taking selfie beside your new car …Tax man while looking at same pic is thinking ” How did he buy it ?” .
Now the interesting part is there is swarm of army working on this project under cover and they are scanning each and every FB account, Instagram etc and linking it with your other relevant data like Adhar card, Pan Card Etc.
Social media posts, bank disclosures to help assess spending
Officials see tax compliance increasing 30%-40% in first phase
Starting next month, Prime Minister Narendra Modi’s government will begin amassing a warehouse of virtual information collected not just from traditional sources like banks but also from social media sites, as it looks to match residents’ spending patterns with income declarations, said people familiar with the matter. Officials will be able to spot those who pay too little tax without raiding offices and homes as they currently do, the people said, asking not to be identified citing rules on speaking with the media.
Built over seven years at a cost of about 10 billion rupees ($156 million), ‘Project Insight’ will complement the world’s largest biometric identity database and India’s most ambitious tax overhaul as policy makers try to get more people to pay up. While the economy is among the fastest-growing in the world, revenues aren’t keeping pace, bloating Modi’s budget deficit and triggering anxiety about over-zealous tax sleuths.
“Data analytics is the way forward for tax administrations across the world,” said Amit Maheshwari, managing partner at accountancy firm Ashok Maheshwary and Associates near New Delhi. “This will also put an end to harassment by tax officials as there will be no public interface. Perceived randomness in scrutiny will come to an end.”
Countries including Belgium, Canada and Australia are already using big data to unearth tax evasion that may have gone undetected without technology. India’s efforts resemble the U.K.’s ‘Connect,’ which is estimated to have cost some 100 million pounds. Since its inception in 2010, it has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue and the number of criminal prosecutions has risen to 1,165 from 165 a year, the London-based Institute of Financial Accountants said in a December 2016 report..
This is a long term project for L&T Infotech, chief executive officer and managing director Sanjay Jalona said, without specifying a time frame. The company has agreed to the build-own-operate-transfer model, which means that while it will be running the project and earning revenues during the contract period, it will ultimately transfer the network to the government once the contract runs out. India’s tax-to-GDP ratio is about 17 percent compared with 25 percent for most Asian countries, according to government data.
Compliance will rise 30 percent to 40 percent during the first phase of the project, the people said. During this time all existing data — including credit card spends, property and stock investments, cash purchases and deposits — will be migrated to the new system and a central team will send postal or email blasts to prod residents to file tax declarations. There will be no physical interaction, they said.
The second phase will be rolled out by December, during which data analytics will mine, clean and process the information. Individual spending profiles will be created and inquiries will be more targeted. In the last phase, which will go live around May 2018, advanced systems will be used to predict future defaults and flag risks.