India’s Income Tax Department today announced its IT contract with L&T Infotech for the implementation of Project Insight.
The large volumes of data necessitated the development of a comprehensive platform for effective utilization of information. The IT department initiated Project Insight to strengthen the non–intrusive information driven approach for improving tax compliance and effective utilization of information in tax administration.
Project Insight will be rolled out in three phases and the first phase is expected to go live in May 2017.
The IT department says that this integrated platform would play a key role in widening of tax-base and data mining to track tax evaders. The new technical infrastructure will also be leveraged for implementation of Foreign Account Tax Compliance Act Inter Governmental Agreement (FATCA IGA) and Common Reporting Standard (CRS).
An official statement from the IT department said that the implementation of reporting compliance management system will ensure that the third party reporting by reporting entities is timely and accurate. A streamlined data exchange mechanism will also be set up with other Government Departments and exchange partners.
A new Compliance Management Centralized Processing Centre (CMCPC) will also be setup as part of the Project for handling preliminary verification, campaign management, generation of bulk letters/notices and follow-up. The new CPC will promote voluntary compliance and enable taxpayers to resolve simple compliance related issues in an online manner without visiting the Income tax office.