New Delhi [India] June 28 (ANI/Mediawire): Analytics and new tools are making the tax administration move towards efficient services and comprehensive use of data.
The influence of technology-based inputs for the taxman is becoming deeper. Its use has grown exponentially as the taxman is using data analytics to increase tax collection, target compliance and improve the efficiency of its services. The most visible example of this is online tax filing and the processing of returns.
"Data is the new soil where everything grows, so if you can get your data ready for sourcing then everything else can become automatic," Jitesh Bansal, Partner and Tax and Finance Operate Leader, EY India, said.
While tax deducted at source (TDS) returns were among the first to be e-filed, "with GST, the technology adoption has grown manifold," Arun Ramachandran, Head of Tax, Tata Consumer Products, added.
While big strides have been taken in improving the time taken and convenience for individual taxpayers, companies want stability in the tax regime.
However, in the global context, enterprises favour a stable and transparent tax regime, an aspect that has a considerable impact on strategy and investments. "When companies used to think about setting up the manufacturing facilities, taxes used to be a second thought. It's now the primary. It is not just the amount, but also the predictability," said Greg Cudahy, Leader, Technology, Media and Entertainment and Telecommunications, EY.
Tax authorities will also look at new laws to deal with emerging digital business models. That will need greater transparency, improved disclosure, and seamless exchange of taxpayer information with the taxman.
Digitalisation is the buzzword, with a bevy of technology tools in their hands so that the tax department can take full advantage of the data at their disposal. Tech infusion in the tax function needs to continue for India to make the leap in governance and economic growth.
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