According to the CBDT chairman, the taxpayers’ emails and laptops will be checked only during searches. After the new Income Tax Act, a new ITR form will be introduced which will make filing returns easier for taxpayers. The department is keeping an eye on people’s expenses and income through electronic information systems, which is increasing the scope of tax.
New Delhi. The Central Board of Direct Taxes (CBDT) believes that in the current financial year 2025-26, there will be an increase in tax collection along with the number of people filing returns. The department is keeping an eye on both the expenditure and income of the people on the basis of its electronic information system, which has increased both the scope of tax and revenue. After the introduction of the new Income Tax law, it will become easier for taxpayers to get information about tax from filing returns.
Excerpts from Assistant Editor Rajiv Kumar’s conversation with CBDT Chairman Ravi Agarwal on all these issues
Question: A new income tax law is going to come, soon the bill will be introduced in Parliament, what will be the benefit of the new law to the common taxpayers?
Answer: There is an effort to provide convenience to the taxpayers. After the introduction of the new bill, we will try to simplify the Income Tax Return (ITR) form further. After the new law, a new form of ITR will come. We have simplified the language of the new law completely. The number of words has been halved. A table has been made. Taxpayers will understand things just by looking at the table.
Question: It is also being said that in the new law, the tax officer will have the right to check the taxpayers’ laptops, emails, Whatsapp?
Answer: Nowadays all financial activities are happening online. The officer will have the right to do this type of investigation only during search and survey at the taxpayers’ place. Even if a taxpayer is being monitored or is being investigated, there will be no right to check the taxpayers’ emails, laptops.
Question: The department prepares the Annual Information Statement (AIS) of the taxpayers’ annual expenses on the basis of which the taxpayers’ financial horoscope is prepared. Which expenses are included in it?
Answer: In the last financial year, 650 crore transactions were covered under AIS. AIS includes 57 categories of financial transactions. Mainly it includes taxpayers’ income, investment, interest received from banks, purchase and sale of property.
When any other big purchase is made, the third party informs the department. This is also included in the AIS. The taxpayer’s AIS is prepared on the basis of this transaction.
The taxpayer files his return after looking at it. If he feels that he has not made the transactions shown in the AIS, he can correct them.
Question: Transactions of how much amount are included in AIS?
Answer: It is different for everyone. For example, property purchases of more than Rs 30 lakh are included.
Question: What is the benefit of preparing AIS, are you also using Artificial Intelligence (AI) to keep an eye on people’s expenses?
Answer: As a result of this, in the last four years, about one crore taxpayers have filed updated returns and the department has received additional revenue of Rs 11,000 crore. With its help, wrong claims of refund are also being caught.
Question: What is the role of AI?
Answer: On the basis of data received from AI, it is identified which taxpayers need more attention. This helps us know which people should have filed ITR and are not doing so. Secondly, if someone is filing ITR less than his income, then we also get to know about it.
Question: Your department ran an electronic campaign, what benefit did the taxpayers get from this?
Answer: Look, it has become very easy for taxpayers to file ITR. Last year, nine crore people filed ITR. Out of these, 3.56 crore people filed returns in a very simple way. Similarly, 2.30 crore taxpayers doing business are also filing returns in a very simple way. That means, it has become very easy for 65 percent taxpayers to file ITR.
Question: Are income tax notices or other information given through post now?
Answer: No, now everything has been done in digital form. That is why we give information through e-mail and SMS. Taxpayers should give their correct mobile number and e-mail ID while filing returns so that they keep getting information. It has also been seen that many middlemen exaggerate the refunds of taxpayers by luring them to get more refund and the taxpayers have to bear the brunt of it. Taxpayers should avoid this.
Question: This time the deadline for filing ITR has been extended to 15 September, whereas earlier the deadline was 31 July. Any special reason behind extending it?
Answer: There was a delay in notifying the ITR form. It took some time to develop the software. Therefore, keeping in mind the convenience of taxpayers, we extended the date. Now there will be no need to change it.
