The very success of the most successful VDIS has pointed out its limitations. It is shameful that in a country of 980 million people, there are only 12 million taxpayers. Rather than occasional fits of innovations, what is required is a tax regime where more people come forward voluntarily to file their returns.

In this era where remix is a fad, the authorities are trying to give new meaning to the concept of Permanent Account Number ( PAN ). The IT dept. has planned to formulate various schemes to make it more attractive for people to opt for PAN. The IT dept. has the state-of - the - art computer facilities with enough storage facility to store and analyse the data about the whole of our population. With the allotment of PAN to all assessees, the dept. will be able to verify the genuineness of a payment made by an agriculturist in a remote village in Karnataka to a machinery manufacturer in Ludhiana. This will make tax evasion more difficult and therefore less attractive.

The Central Board of Direct Taxes has already begun the process of identifying transactions where the use of PAN will be made mandatory. Tax compliance in advanced countries is much higher than in developing countries thanks largely to the fact that in all major transactions, the taxpayer is required to state the tax code assigned to him. Developed countries have a well-developed computerised system whereby all such transactions ultimately get stored in the revenue records. Only time will tell how effective this new PAN masala proves in Indian situation - where it is well-nigh impossible to beat the ingenuity of the tax-evaders .

Another measure being planned by the CBDT is the simplification of return forms. The form is being revised and is expected to be issued soon. The dept. is also planning to introduce a 'tax mobile' van installed with computers. The idea is to take the tax office right to the doorstep of the taxpayer, thereby making the IT dept. more taxpayer friendly. 'File, smile & go,' and 'Help us to help you ', would be the slogans painted on the vans. Initially, the vans will start operations in Delhi, where it would visit various localities on predetermined dates. The van would have different counters- an assistance counter to help people fill up return forms, a form section, an assistance counter to help and guides assessees.

Another area where the IT dept. is now focusing its attention to is the corruption in the dept itself, which is an open secret. It is learnt that the Chief Commissioners all over the country have identified the corrupt officials, who will be reported shortly to CBDT and thereafter to the CBI. The move follows a CBDT directive to start this vigilance drive on a priority basis.