The Income Tax Department today signed a contract with L&T Infotech for implementation of Project Insight, designed to strengthen the non-intrusive information driven approach for improving tax compliance. "The Income Tax Department today signed a contract with L&T Infotech Ltd for implementation of Project Insight.
The project will be rolled out in three phases and the first phase is expected to go live in May 2017," the Finance Ministry said in a statement. "This integrated platform would play a key role in widening of tax-base and data mining to track tax evaders. The new technical infrastructure will also be leveraged for implementation of Foreign Account Tax Compliance Act Inter Governmental Agreement (FATCA IGA) and Common Reporting Standard (CRS)," it added. The project will use technology to allow the government to collate databases of IT returns, IT forms, TDS/TCS statements and Annual Information Return (AIR) data. As part of Project Insight, a new Compliance Management Centralized Processing Centre (CMCPC) will also be setup for handling preliminary verification, campaign management, generation of bulk letters/notices and follow-up. "The new CPC will not only promote voluntary compliance but also enable taxpayers to resolve simple compliance related issues in an online manner without visiting the Income tax office," the statement said.