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The Income Tax Department is gearing up to prepare a 360-degree tax profiling of individual tax payers in the country to keep a tab on tax
evasion and money laundering.

“Finance inister has given a go-ahead for integrated 360-degree mapping of individual tax payers by utilising data collected from various sources
like annual information returns (AIRs) from banks, credit cards, mutual funds, stock market and property registrars,” a senior Finance Ministry
official said.

Only esterday, Finance Minister P Chidambaram had said that in the meeting of chief income tax commissioners, decision has been taken for
integrated tax mapping. He, however, declined to give details about the project.

Sources said fter a successful pilot project on integrated tax profiling in Delhi, the I-T department also has plans to prepare a huge data bank that
would have all sorts of information on potential tax evading individuals and corporate houses.

The overnment has so far gathered information about Rs 60,00,000 crore investment by tax payers through AIRs. Under the tax mapping, the
department plans to explore cases involving large scale tax evasion.

The ources said the Financial Intelligence Unit (FIU) under the ministry will also provide information about potential tax evaders, as it
collects and analyses information about financial transactions through banks and other financial institutions.

Press Trust of India / New Delhi July 17, 2007

All the new income tax payers in the country will soon begin to get biometric permanent account number (PAN) cards with enhanced security features like fingerprints or retinal scans, aimed at checking duplicate cards and better tax compliance.

“The process of eliminating about 13 lakh duplicate PAN cards is in last mile. Once that process is completed, which will happen shortly, we will set a date, after which all new PAN cards will only be biometric,” Finance Minister P Chidambaram said after inaugurating a Chief Income Tax Commissioners conference.

When asked whether the date of launching biometric PANs could be October, he said, “it could be.”

Referring to the fate of current PAN card holders, Chidambaram said, “they will be persuaded to switch over to biometric PAN cards in their own interest. The earlier PAN cards will, of course, remain valid.”

Finance Ministry had set up an internal group to finalise the norms for introduction of biometric PANs.

The ministry is hoping to introduce iris-based biometric PAN cards to all new applicants once the present PAN data is updated.

Chidambaram also said it has been decided in the meeting that there will be “integrated 360-degree profiling of individual tax payers,” declining to give details.

Sources , however, said it will involve collaboration of tax payers’ information regarding bank accounts, credit cards, mutual fund investment, purchase of property and shares to investigate tax evasion.

Source : Business Standard