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Electronic snooping not easy for taxman

It will take at least five years before the I-T department will be able to access data on an assessee's shopping binges electronically.

T O D A Y

• Rakesh Mathur at IIT • Wipro-Siebel deal • Indo-Japanese JV • Taxman's e-snooping

This is largely because the department has yet to establish a comprehensive system before embarking on this Herculean task. At another level, a project of this magnitude requires huge outlay.

As far as tracking assessees electronically, the I-T department has recently defined a plan of action. Allotting 'permanent account number' cards marked the first step towards establishing an accurate and comprehensive database.

However, there has been a protracted delay in issuing these cards thanks to inadequate infrastructure and manpower.

Once the PAN cards are issued, the I-T department will have to electronically link the I-T offices in all major cities.

This will be necessary to track expenditure incurred by registered assessees in these metros.

Thereafter, the department can go ahead and set up connectivity with banks, retail outlets, et al.

Senior officials in the finance ministry have confirmed that establishing electronic links with a significant number of commercial establishments will take a couple of years.

However, in the next two years, the government is expected to expand the number of areas of expenditure where a PAN must be compulsorily quoted.

While it is likely to refrain from such a move in the next few months considering the hue and cry raised by assessees when it notified the compulsory quoting of PAN in a select category of transactions, this move is inevitable.

Whether it is in the purchase of jewellery or consumer durables over a prescribed limit or even a new electricity connection, the assessee will have to present his PAN card before the expenditure.

- Compiled from the Indian media

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