Find Out How Income Tax Department Monitors Your Money

A common misconception is that the tax department cannot monitor everyone and you may escape the tax department’s radar. But when the IT department issues a notice for scrutiny, one wonders how is the income tax department monitoring people's money? To monitor income, the government collects details of your financial transactions which are linked to Permanent Account Number or PAN Card. The information collected through the PAN is electronically matched to the information filed in the income tax return and queries are raised in case of any discrepancies. The first source of information on income for the tax department is TDS/ TCS. Income tax officials are using social media to ascertain the lifestyle and thus, the real income of an individual. There is no filtration or verification process to authenticate the information on social media and accordingly, income tax officials cannot conduct search and seizure based on posts on social media.

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