Income Tax Return FormsThe Income Tax Department is all set to share information with the Goods and Service Tax Network (GSTN) to bring more businesses into its fold and also curb any tax evasions, reports Livemint.
This empowers direct and indirect tax authorities to investigate any discrepancies in details that companies might have committed while filing tax returns.
The government on Tuesday (30 April) issued an order to The Central Board of Direct Taxes (CBDT) authorising the income tax department to share details including sales and profits of businesses with GSTN.
This move can be seen as the government’s intention to go after taxpayers who avoid paying taxes. By combining the data/information available with the IT and GSTN, the government can validate the amount of income disclosed to identify under-reporting or non-reporting of income.
This formal sharing of data between the direct and indirect tax authorities mean businesses have to be more careful while filing their tax reruns to avoid any misinformation and mismatch of details.
GSTN is a non-profit, non-government organisation managing the IT systems of the GST portal and its database; the portal is used by the government to track the financial transaction and provide taxpayers with services – from registration to filing taxes.
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