As part of a massive exercise to identify high risk non-filers of Income Tax returns and ask them to file returns and pay taxes thereon, the Income Tax Department has sent letters to another batch of 35,000 non-filers this week. These persons were part of around 12 lakh non-filers identified by the Department by mining its database. With this latest batch, the Department has now issued letters in 2,45,000 cases.

In order to contact the taxpayers, who have shifted their address or have refused to receive the letter, the help of field formations in being sought. The assessing officers posted all over the country have been supplied the details of such taxpayers on an online monitoring system. The assessing officers have been asked to contact the taxpayer and persuade them file their return and pay due taxes.

As a result of this exercise, 3,44,365 returns have been received from the target segment. Such persons have also paid self assessment tax amounting to Rs 577 crore and advance tax of Rs. 408 crore. The Income Tax Department plans to pursue such cases vigorously to spread the message that while the Department is improving its taxpayer services to facilitate honest taxpayers, it also has the will to go after recalcitrant taxpayers. This exercise will continue till all potential non-filers are covered.

The Department now proposes to extend this exercise to persons who have conducted high value transactions during F.Y. 2010-11 and F.Y. 2011-12. It is also developing a dedicated module on the e-filing portal which will give details of returns not filed, ITR-V not submitted, demand not paid etc to individual taxpayer. The taxpayer can post his comments so that situation on such issues is crystallised. This will be one more step towards greater transparency and minimizing the grievance of tax payers.

Tax compliance enforcement using data driven notices to prompt non filers to file returns and address unpaid taxes. The tax authority is conducting a data driven campaign targeting high risk non filers by issuing notices, equipping assessing officers with monitored taxpayer details and seeking field assistance to contact unreachable taxpayers to secure filing and payment. The initiative has produced returns and voluntary tax payments, will be expanded to include high value transaction parties, and will be supported by an e filing portal module showing individual non filing indicators and allowing taxpayer comments to enhance transparency.