Seamless Data Exchange in Tax Admin
Deloitte India has underscored the importance of seamless data exchange and efficient data sharing among businesses, taxpayers, and tax authorities to enhance the functionality of the Annual Information Statement (AIS) within the income tax department. The AIS provides taxpayers with a comprehensive overview of their financial information.
The AIS encompasses various financial transactions such as cash deposits or withdrawals from bank accounts, sale or purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, and cash payments for goods and services.
In its paper titled “Annual Information Statement: Ushering in a new era of tax administration,” Deloitte India recommends measures to bolster the functionality of AIS and improve tax administration and compliance. These recommendations include:
- Seamless Data Exchange: Creating mechanisms for smooth data exchange between businesses, taxpayers, and tax authorities to facilitate the flow of information required for the AIS.
- Framework for Data Sharing: Establishing a robust framework for efficient data sharing, ensuring that relevant financial information is accessible to all stakeholders involved.
- Enhanced Efficiency: Focusing on enhancing the efficiency of tax administration and compliance processes by leveraging technology and data analytics.
- Comprehensive Coverage: Ensuring that the AIS captures a wide range of financial transactions to provide taxpayers with a holistic view of their financial affairs.
