Project Insight: Exploring Hidden Incomes

Project Insight is a new project started by Indian Government to capture tax evaders. If you are serial tax evader then shortly finance ministry will look at you and capture you through Project Insight.

 

It is clear by Project Insight that Government dig your accounts and find your transactions from root level.

It is a ministry project, expanding the tax base by grabbing tax evaders using Project Insight. The ministry spent 150 crore to buy data analytics software and the required infrastructure integrated with it. The ministry has also attached a non-disclosure agreement to the tender for security reasons.

 

Instead of using instruments like search and seizures to track the source of hidden funds, income tax department is going to use the big data analytics software to mine information. India is now capable of making sense of collected data using unmatched information Technology. India has giants like Infosys, Exact IT Solutions, HCL, TCS, and Wipro etc. So spending so much money for data analytics software is sensible from my point of view. Now the government should also adopt GST that creates audit of value addition and income thoroughly. Both the technologies lead to a sharp reduction in tax evasion.

 

The most important and interesting point is the government catch tax evaders according to their ranks, it means tax evaders expected to rank according to the amount of tax that could be recovered and government will go after first ranked tax evader first and so on.

 

The challenges under the project insight will be

 

·         Leverage Data Analytics

·         Alert Management

·         Case analytics capabilities to prepare case profiles

·         Select appropriate intervention

 

 

The project track permanent account numbers which are quoted on financial transactions and match them with income tax filling.

 

The ministry automate common tasks which take so much time in past and hope to speed up to resolve the cases of tax evasion.

The tender calling for bids was floated in June. According to advertisement ,bidders can collect it by submitting a letter of authorization, a non-disclosure agreement and a pre-bid integrity pact.

There are also advertisements for recruitment of staff required to run this project by Directorate of Income Tax (Systems).According to the Directorate, the project will integrate

• Enterprise data warehouse
• Data mining
• Web mining
• Predictive modelling
• Data exchange
• Master data management
• Centralised processing
• Compliance management
• Case analytics capabilities

But point of concern is the back ended payment is low which can restrict the bidders to step aside and do not take part in bidding.

So the government is taking serious steps to catch tax evaders and boost Indian Economy. It is beyond our thinking to calculate the benefit India will have. So, it is mandatory to fill tax on time and be a noble person.

Ruchi Anand and Associates, the top tax consultant in India whom you can trust for tax filling and resolution of tax issues. They also provide audit services, set up a new company, Outsourcing, Reporting, Taxation, and Special Areas.

Goods and Service Tax enhance Indian Economy

Industry body Assocham today came out with a set of recommendations on the proposed Goods and Services Tax (GST), saying the rollout may lead to around 1 per cent rise in India's GDP growth.

"Goods & Services Tax (GST) will be a game changer for the Indian economy. The new tax regime can lead to efficient resource allocation within the economy, improve tax compliance and positively impact GDP growth.

"More importantly, the projected boost to the manufacturing sector will make the proposed taxes a critical enabler to actualise benefits from 'Make in India' initiatives," Assocham President Rana Kapoor said.

The short-term recommendations include formulation of a clear and unambiguous definition of goods & services, a revenue Neutral Rate (RNR) suitably determined to rationalise tax burden and evolving a consensus on threshold limit for GST application to protect small businesses.

"The implementation of GST would lead to a simplified tax regime and easier compliance norms. This is projected to increase GDP annually by 0.9-1.7 per cent with an accompanying increase in tax revenues of around 0.2 per cent of GDP.

"Twenty per cent reduction in logistics costs of non-bulk goods is expected due to a rationalised tax framework. This would make domestic production of goods and services more cost effective with ensuing 3.2-6.3 per cent annual gains in exports," Kapoor said.

The chamber also recommended formulation of clear 'Place of Supply' rules to avoid ambiguity in tax administration and a mechanism to compensate states for potential revenue loss from GST rollout without major distortion of its structure, etc.

Ruchi Anand and Associates are the top indian audit firm who provide all tax related solutions and internal audit services in India. It is located in Delhi,India.  RAAAS also provide services to set a new company in India.

Read more at:
http://economictimes.indiatimes.com/articleshow/48147931.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Things to do with your child’s summer income

Students do summer jobs usually and here is the things you should know about your child income.
There is W-4 form which is filled out by all taxpayers before starting a job. This form is used by employers to evaluate the sum to be deducted from pay checks as tax. Students with multiple summer jobs wants that their employers withheld sufficient amount to cover their total income tax liability. If you have any doubt regarding your child’s withholding, call chartered accountant in Delhi. 

Your child is working as a manager or waiter, he may receive tips. Al l tip income is subject to taxation.

Whether your child is earning from odd jobs like babysitting. All the income from self employment is also taxable. 

If your child income is more than 24,000 Rs /$400, he or she need to pay self employment tax.
Newspaper carriers or distributors under age 18 are not subject to self –employment tax.

There are so many other types of jobs regarding which you are confused about paying taxes or not. The simple solution is to call tax advisor in India. These taxes are for social security and Medicare facilities. So, there is always scope of doing something meaningful to society. 

Ruchi Anand and Associates, top indian audit firms provide all tax related solutions from tax filing to company formation.