Analysis On Role Of Tax Authorities In The Prevention And Detection Of Tax Fraud

Arsalan Ahmed Khan, St. Joseph College of Law

ABSTRACT

In India, the tax authorities play a key role in the prevention and detection of tax fraud. They are responsible for developing and enforcing regulations to ensure compliance with the Indian tax code. They also monitor the activities of tax payers and investigate suspicious activities. The tax authorities use several methods to detect and prevent fraud, such as conducting audits, reviewing financial records and documents, and interviewing taxpayers. Additionally, they use advanced analytical techniques such as data mining and profiling to identify patterns of suspicious activity. The tax authorities also work closely with other government agencies to ensure compliance with anti-money laundering regulations and to investigate cases of tax evasion. Finally, they are responsible for levying fines and prosecuting those found guilty of tax fraud. By taking these measures, the tax authorities can effectively prevent and detect tax fraud in India.