Big data on financial behaviour of individuals and businesses secured from sources ranging from social network to tax treaties is making tax administration faceless and non-intrusive, yet precise in picking up cases warranting a long, hard look.
In an interview, Sushil Chandra, chairman of the Central Board of Direct Taxes (CBDT) spoke about how the overall approach to taxation is changing and how the authority is prepared to deal with corporations crossing the line in tax planning. Edited excerpts:
You have effectively addressed round-tripping, the practice of routing funds across markets to avoid taxes. What is your next biggest worry?
All persons, who are supposed to be paying taxes should pay taxes. Now we have a large information network and we are using sophisticated data analytics. Many salaried individuals whose taxes are deducted at source by employers do not file returns, which is wrong. Everyone should file returns.