PAN Cards go Hi-tech

Biometric PAN cards and other technology-driven services from the Income Tax department will soon be a reality. The Finance Minister P. Chidambaram made known the department’s plans to introduce controls to keep a tighter vigil on taxpayers, while addressing the national conference of Income Tax Commissioners in New Delhi.

The IT department is currently in the course of neutralizing duplicate PAN
cards, and the process of biometric PAN cards would be taken up soon after.
From October onwards, new applicants for PAN cards will receive iris based
biometric PAN cards to check on duplicate cards and ensure adherence to tax
rules.

Tax payers already holding PAN cards can apply for fresh biometric
cards, clarified the minister.
Biometric cards carry advanced security features like fingerprint or retinal
scans, and provide precise and secured access to information.

Fingerprint,
retinal and iris scans reveal accurate data if processed methodically.
The Finance Minister divulged plans to start a new procedure for taxpayer
profiling which gives a comprehensive 360 degree analysis of the tax payer.

The system is operational on a trial basis in Delhi, and has already thrown
up a few vital cases of tax evasion. Its success has prompted the department
to initiate the system in other tax circles as well.

The taxpayer profiling system brings together information on taxpayers
from all sources, i.e. bank accounts, credit cards, mutual fund and equity
investments, investments in real estate and other similar annual information
reports to create an individual’s financial profile.

Taxpayers can look forward to e-filing of returns for tax deducted at source
this year, and corporates and all those covered by Section 44AB can avail
of this service from January 1, 2008.