In a first for the Government of India (GOI), the Income Tax department will reportedly use big data analytics to comb through personal bank deposits money holders. The move has reportedly been adopted to streamline the task of IT officials since it is impossible to go through all the bank details and compare it with tax-related data.
As per reports, the analytics tool was used in the past for corporate tax reporting. Now, for the first time it will be used on a massive scale to rule out any in discrepancies found in personal taxes and records.
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How will the analytics tool work:
- According to news reports, the big data analytics tool will match the tax returns filed by people, tax related data and tax paid by people who own companies.
- All the data (such as how much money was deposited by individuals) will be parsed from banks
- Any discrepancies observed in tax records will be red flagged
- Based on the alerts, IT officials will issue notices to individuals post December 31
The move is largely seen as an effort to separate tax payers from black money holders. It comes close on the heels of Prime Minister Modi’s landmark demonetization drive that caused a nationwide stir. In a similar move earlier in the year, the IT department had fired a salvo to banks and post offices to submit details of high value cash deposits in banks and post offices.