Tax authorities are set to crack down on those not paying their due taxes and will soon send out letters to about 35,000 individuals seeking to know why they have not filed tax returns. The finance ministry on Monday again issued a stern warning to taxpayers to disclose their true income and pay taxes or be ready to face action, warning that it has information on over 12 lakh non-filers. This is the second such warning issued by the ministry that is on an overdrive to raise more taxes in order to meet the fiscal deficit target of 5.3 per cent of GDP. "Rule- based algorithms have been used to identify high priority cases for follow-up and monitoring," the finance ministry said in a statement. The ministry said that letters are being sent to 35,170 PAN holders by the directorate of intelligence and criminal investigation. The ministry has also set up a nodal cell to capture the response and take follow-up action. "It is the first batch (of letters)," the ministry statement said.
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