Panel moots Tax Info System through NSDL by early 2003-04

NEW DELHI: The government can establish a nationwide tax information network through the existing facilties of the National Securities Depository Ltd by the beginning of next fiscal for speedy collection of tax, the Task Force on Direct Taxes said.
The panel, headed by Finance Minister''s advisor Vijay Kelkar, said the Tax Department should concentrate on the core functions of assessment and enforcement of duties while outsourcing logistics and support services like tax collection.
Despite efforts made by Central Board of Direct Taxes on computerisation of taxpayers records, the consultation paper said the facilities have not kept pace with the growing demand on tax administration.
"The government should establish a national tax information network (TIN) on a build, operate and transfer basis... The existing facilities of NSDL can be quickly deployed to make a systematic improvement in processes and reduce transaction cost," it said.
The TIN can be utilised in receiving all tax deducted at source (TDS), advance taxes and refunds, it said, adding "TIN will also receive online information about collection of taxes from banks, which can be downloaded by the department."
Tax-payers can have the facility of accessing TIN system through a secure and confidential PAN-based identification to ascertain tax payments credited to his account and the status of returns and refunds.
"TIN will therefore serve as a gateway to the National Computer Centre of the Income Tax Department. It will help overcome the paucity of technical manpower and inadequate technical infrastructure," it added.