The government is exploring options to set up a facility to monitor advance income tax filings by companies and high networth individuals, on the lines of dedicated monitoring of returns and tax deducted at source (TDS) categories.
The move is in line with the government’s plan to tighten the tax system and improve monitoring of domestic transactions.
It will also help achieve tax collection targets as the overall economic growth improves and companies report higher quarterly earnings, a senior income-tax department official said.