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November 2011

CBDT’s business intelligence data warehousing to boost tax mop-up

By Raman Jokhakar, Tarunkumar Singhal
Chartered Accountants
Reading Time 1 mins
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To enhance revenue realisation and catch tax evaders quickly, the Central Board of Direct Taxes is working on a comprehensive data warehousing system, which will transform the functioning of the Income-tax Department.

The external data base would complement the internal database of the Department which includes information on permanent account number (PAN), e-filing data, tax deducted at source, share transaction tax payments, annual information returns on high-value transactions and specific information gathered by the Central Information Branch.

According to an internal estimate of the Department, the size to be handled by the I-T warehouse could be around four billion data pieces. The Integrated Taxpayer Database Management System alone has over 600 million pieces of information, mobile numbers would throw up around 1.2 billion data pieces and PAN database had 120 million entries. Besides, there would be local data and also information gathered from different sources.

A senior Income-tax Department official told Business Standard the idea behind RFBIDW was to shift attention from individual assessee to groups such as families, business groups, trades, dealers in particular items and intermediaries for curbing tax evasion.

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