Project Insight : All you need to Know

Introduction

  • Project Insight is an initiative of finance ministry 
  • The main aim of the project is to detect tax evaders with the help of technology 
  • The project also aims to widen the tax base 
  • Project Insight is likely to be implemented in this calendar year 2017 – 2018 

Nodal Agency

  • Finance Ministry 
  • Tax department 
  • Banks and other financial institutions 

Tax Information collated by Insight

  • Integration of tax data among banks, government departments and financial institutions 
  • Tax department to set up a new processing centre that is centralized to monitor tax payments 
  • The existing network of PAN based tax transactions is also used to monitor 
  • The project will verify and collate information received from third party, financial institutions and banks 
  • Insight integrates tax information received from all sources in an accurate and timely manner 

Additional Features

  • Compliance management systems are being developed 
  • Project Insight will handle all preliminary verification, follow up of information and bulk letter generation and notice generation pertaining to tax evasion 
  • Insight will serve as the centre for tax data exchange for various government departments 

Significance

  • Project Insight is yet another initiative to curb black money 
  • It will aid in the implementation of GST 
  • DTAA implementation will be made easy through Insight 
  • All Tax based information from the recent Income Disclosure scheme are added 
  • The large pool of information will be useful in data mining to track the tax evaders 
  • The tax base will also widen gradually 
  • Tax evaders will be caught in a digital manner rather than the usual method of search and seizing 

Conclusion

  • Insight will help in resolution of tax issues in online manner 
  • Voluntary compliance of tax evaders is possible in a digital manner 
  • Tax payers can get the advantage of paying tax online reducing the hassles and time spent visiting the tax office physically 
  • Insight will enhance tax collections from the corporate and industry sector 
  • Insight will also benefit the individual tax payers 
  • The tax base and tax payers will increase as a result of digital monitoring of payments 
  • Foreign relations of India pertaining to tax matters will improve 
  • Insight will be an upgraded technical infrastructure that will help in contribution of DTAA, FATCA and CRS 
  • Overall, Insight is a digital means to make tax payments transparent and curb black money 
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