integrated tax payer data management system...tax payer data management system (itdms) assists in...

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March 2011

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and Pensions, Government of Indiahttp://indiagovernance.gov.in/

Researched and Documented by

OneWorld Foundation India

Integrated Tax Payer Data Management System

Transparency and Accountability

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

Table of Contents BACKGROUND ................................

OBJECTIVE ................................................................

WORKING DESIGN ................................

METHODOLOGY ................................

KEY STAKEHOLDERS

REFERENCES: ................................


Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances


Researched and documented by


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Case Study E-Governance

Integrated Tax Payer Data Management

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Government of India

BACKGROUND The Income Tax Department is responsible for collection of taxes and distributing returns. For

this purpose, they receive enormous amount of data from internal and external sources that

help perform their duties. However, these data are stored in different

databases, delimited text files and fixed length text files (RFP, Income Tax) at different divisions

of IT Department. Prior, to implementing ITDMS, there was no mechanism in place that would

allow the IT department to conduct search

parameter search between the data stored in various Directorate General of Income Tax.

Existence of multiple databases with different departments made the enforcement work of IT

Department difficult.

The Directorate General of Income Tax (Investigation), which is responsible for undertaking

investigations to check for evasion of taxes and circulation of black money, refers to the

databases to regularly track income of high net worth individuals and compan

appropriate tax payments are made by them. It was a challenge for the department to

successfully leverage the data to “analyse and build integrated view of a tax payer’s data to

carry out its various statutory activities” (RFP, Income Tax

parameter that would enable the search activities. There was lack of standard format for

storage of names and addresses of individual in multiple large databases with volume of

records between 20-50 million.

Therefore, to enhance the performance of the IT deparment, as well as increase the revenue of

the government, IT Department envisaged an integrated data mining tool that would allow

them to search for tax information across different internal and external sources. The

Tax Payer Data Management System (ITDMS) assists in generating the 360 degree profile of an

entity by compiling information from all data sources that helps the government to track tax

payments of individuals. In case of an individual, the famil

and it also links the information to all the related entities in which person is being investigated

has interest.

OBJECTIVE

To develop a system that will build a “data bank of millions of records, trace

relations/associations (family tree) between the data and entities, and track transactions of each

entity using identity search technologies in general and approximate name search and address

matching technologies in particular with specific reference to the Indian nam

(RFP, Income Tax).







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The Income Tax Department is responsible for collection of taxes and distributing returns. For


help perform their duties. However, these data are stored in different



allow the IT department to conduct search for evasion of taxes. There is also lack of single



Directorate General of Income Tax (Investigation), which is responsible for undertaking


databases to regularly track income of high net worth individuals and compan



carry out its various statutory activities” (RFP, Income Tax). Moreover, there was no single



50 million.

enhance the performance of the IT deparment, as well as increase the revenue of


them to search for tax information across different internal and external sources. The



payments of individuals. In case of an individual, the family tree of the person is also created



ociations (family tree) between the data and entities, and track transactions of each


matching technologies in particular with specific reference to the Indian nam




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The Income Tax Department is responsible for collection of taxes and distributing returns. For


forms such as excel,



for evasion of taxes. There is also lack of single



Directorate General of Income Tax (Investigation), which is responsible for undertaking


databases to regularly track income of high net worth individuals and companies to ensure all



). Moreover, there was no single



enhance the performance of the IT deparment, as well as increase the revenue of


them to search for tax information across different internal and external sources. The Integrated



y tree of the person is also created



ociations (family tree) between the data and entities, and track transactions of each


matching technologies in particular with specific reference to the Indian names and addresses.”




Government of India

WORKING DESIGN A Request for Proposal was advertised by the Income Tax Department to invite software

developing firms to build the technology architecture and Posidex Technologies was identified

as the vendor for this system.

According to Posidex, designing the data mi

• There was no unique identifier across that data sources

• No defined standards for writing name and address

• Poor and uneven quality of information available

• Very large data volume for querying and matching

The application, built by Posidex Technologies Ltd., utilises ICT to reduce interface between the

public and the Income Tax Department. It is designed as a non

can access/handle very large data to profile an individual or compa

software generates a complete profile of a person’s financial information and tax payments and

information is then used by the government to trace unaccounted income. Earlier, it used to

take up to two weeks to create a complete pr

of hours to generate the query.

Solution Architecture for ITDMS

Source: http://www.taxadmin.org/fta/meet/10tech/PPTs/Gouravelly_India.pdf







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A Request for Proposal was advertised by the Income Tax Department to invite software


as the vendor for this system.

According to Posidex, designing the data mining project was a challenge because

here was no unique identifier across that data sources

No defined standards for writing name and address

Poor and uneven quality of information available

Very large data volume for querying and matching

pplication, built by Posidex Technologies Ltd., utilises ICT to reduce interface between the

public and the Income Tax Department. It is designed as a non-intrusive investigation tool that

can access/handle very large data to profile an individual or company for tax scrutiny. The



take up to two weeks to create a complete profile of an individual but now it takes only couple

of hours to generate the query.

Solution Architecture for ITDMS

http://www.taxadmin.org/fta/meet/10tech/PPTs/Gouravelly_India.pdf




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A Request for Proposal was advertised by the Income Tax Department to invite software


ning project was a challenge because

pplication, built by Posidex Technologies Ltd., utilises ICT to reduce interface between the

intrusive investigation tool that

ny for tax scrutiny. The



ofile of an individual but now it takes only couple





Government of India

Source: http://www.taxadmin.org/fta/meet/10tech/PPTs/Gouravelly_India.pdf

METHODOLOGY

For purposes of this documentation, Governance Knowledge Centre research team conducted

secondary research through documents available at Income Tax Department and Posidex

Technology. Detailed reference is given at the end of document.

KEY STAKEHOLDERS

• INCOME TAX DEPARTMENT

• DIRECTORATE GENERAL OF

.







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Information Flow in ITDMS




hnology. Detailed reference is given at the end of document.

KEY STAKEHOLDERS

EPARTMENT

ENERAL OF INCOME TAX (INVESTIGATION)




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Government of India

Research was carried out by the OneWorld Foundation, Governance Knowledge Centre (GKC) team.

Documentation was created by Research Associate,

For further information, please contact Naimur Rahman, Director, OWFI at

REFERENCES: Request for Proposal Integrated Taxpayer Data Management System, Income Tax Department

accessible at http://www.incometaxindia.gov.in/archive/2.pdf

Presentation of Integrated Taxpayer Data Management System, Income Tax Department,

accessible at http://www.taxadmin.org/fta/meet/10tech/PPTs/Gouravelly_India.pdf

Case Study of Integrated Taxpayer Data management System, Income Tax Department,

accessible at http://www.posidex.com/pdf_files/Posidex_Incometax.pdf







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Documentation was created by Research Associate, Aryamala Prasad

For further information, please contact Naimur Rahman, Director, OWFI at [email protected]

Request for Proposal Integrated Taxpayer Data Management System, Income Tax Department

accessible at http://www.incometaxindia.gov.in/archive/2.pdf




http://www.posidex.com/pdf_files/Posidex_Incometax.pdf




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Aryamala Prasad

[email protected]

Request for Proposal Integrated Taxpayer Data Management System, Income Tax Department




integrated tax payer data management system...tax payer data management system (itdms) assists in...

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