If you still don’t like to pay tax but love to show off your bling on internet, now is the time you should stop.
Else, authorities from Income tax department might come knocking at your door.
The new Project Insight will allow the I-T department to keep a tab on social media profiles of taxpayers. This is a new tactic of the Income-tax department to take control of black money.
Everything that you need to know
Starting from April 1 (and mind it, it is not an April fool prank) you might get a new stalker on the internet.
This one is a super keen stalker that works for the government. And if you post a photo of your new luxury car on Facebook or a picture of you enjoying your luxurious vacation on Instagram, Income tax officers might come for you.
This all will be done under a new project called “project insight.”
Its main purpose is to trace black money and find the link between spending pattern and income declaration. This new approach might help the I-T department track down black money of individuals that are not willing to show their real earnings.
How are they going to track all the profiles?
It is certain that the project can’t be handled by I-T department on its own. That’s why to carry out Project Insight, the department had made a partnership with L&T Infotech. Reports published on Business Standards have suggested that the department will create a 360-degree profile of taxpayers.
This 360-degree profile will include the new and non-filers (undeclared possessions) in order to calculate their liability and tax balance.
The profile will be a collection of taxpayers transaction details, relationships, social media accounts, IT forms, IT returns, TDS/TCS statements and Statement of Financial Transactions collected from financial institutions.
Undoubtedly, this project will be helping a tax officer to keep track of high-value transactions. It will also help to restrain the circulation of black money.
This means if you share a picture of your luxurious purchase on Instagram, it will make the taxmen compare your spendings with the income that you have declared. In case numbers don’t match, next you might hear a knock from the I-T department.
The main purpose of this project is to bring out more people, who are trying to evade from paying tax. Though, India is not the only country who is tracking social media profiles of taxpayers.
Belgium, Canada, and Australia are already using social media data to keep a check on tax avoidance.