The Income Tax (I-T) Department’s move to outsource its record-keeping functions to private players is a matter of public concern (“I-T to make staff’s work less taxing”, March 14). Handing over confidential financial information of individuals to private business is worrisome. A year ago, reports appeared in the media of some people gaining access to the I-T Department’s network and issuing bogus refund orders. It seems the I-T Department has not learnt a lesson from this. Sometimes, what is perceived as innovation brings disaster instead. A few years ago, the American housing finance unbundled its operations into origination, loan servicing and warehousing. This gave rise to securitisation which resulted in the sub-prime mortgage crisis.
The news report mentions that “adequate safeguards” would be taken by the authorities but experience suggests that once the scheme is introduced, the whole issue is sidelined.
It would be worthwhile for I-T authorities to spend their resources and time on measures such as doing away with the filing of returns for the lower rung of taxpayers.
The I-T Department should also work towards improving assessment skills of tax officials enabling them to work without hindrance or fear.
S Subramanyan, Mumbai
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