India: Government launches SMS drive to check tax evasion

By APD writer Rishika Chauhan

**NEW DELHI, July 9 (APD) ** - To catch tax cheats, the government launched a short message service (SMS) or text message drive recently. Identifying thousands of people who made notable investments in the last two years, the income tax (I-T) department sent mobile text messages to them asking them to file I-T returns.

So far such messages have been sent to more than 10,000 people who bought properties for more than Rs 5 million or invested Rs 1 million in mutual funds or bought cars.

Sushil Chandra, the chairman of the Central Board of Direct Taxes informed that if the people still fail to pay taxes, the authorities would take strong action against them. In some cases raids could also follow the messages.

“With the government going after black money hoarders, many people have voluntarily come under the tax net in the recent past and through data mining we are getting real-time information about all citizens who have made big investments but are outside the tax net”, he stressed.

As of now, big cities like Delhi, Mumbai, Kolkata and Bangalore have been the focus of the sms drive. The I-T department is also attempting to identify people who spend a lot but do not pay tax.

Over the years tax evasion has become a big problem in India and the government is trying to find new ways to control the problem. Demonetization of Rs 500 and Rs 1000 bank notes last November was also believed to be a means of checking undisclosed incomes, which people hide to avoid taxation.

(ASIA PACIFIC DAILY)