Tax officials are using big data analytics to crack a whip on black money hoarders
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The Income Tax department has become tech-savvy and is using analytical tools to assess personal bank deposits to crackdown on black money .
big data analytical tools for the first time to keep an eagle’s eye on personal accounts.
Earlier, such tools were used only for corporate tax.
"It's practically impossible for tax officials to go through all the data obtained from banks and compare it with other tax-related data. Analytics is being used to look at discrepancies. This would then be scrutinised by experienced tax officials,” a person close to the development told ET.
Through this big data analytical tool, the tax officials can scan through tax returns filed by individuals, companies, etc. In case of irregularities, these analytical tools raise red flags. Tax officers could then issue notices to individuals based on this after December 31.
Talking to ET, another person close to the development, said, "What the analytics tool can throw up is not just the cash deposited in banks by an individual, but details of the income tax paid over the years, corporate tax paid by his company, number of employees he has and whether they too have deposited money recently. Every detail of the individual's tax history can be known.”
Under the bill to amend Section 115BBE of the Income Tax Act, deals with unexplained deposits in banks will be taxed. According to the amendment, tax officers can now tax such deposits at 60% (plus cess) as against 30% earlier. The new tax law is applicable from April 1, this year.
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The tax officials are using Earlier, such tools were used only for corporate tax.
"It's practically impossible for tax officials to go through all the data obtained from banks and compare it with other tax-related data. Analytics is being used to look at discrepancies. This would then be scrutinised by experienced tax officials,” a person close to the development told ET.
Through this big data analytical tool, the tax officials can scan through tax returns filed by individuals, companies, etc. In case of irregularities, these analytical tools raise red flags. Tax officers could then issue notices to individuals based on this after December 31.
Talking to ET, another person close to the development, said, "What the analytics tool can throw up is not just the cash deposited in banks by an individual, but details of the income tax paid over the years, corporate tax paid by his company, number of employees he has and whether they too have deposited money recently. Every detail of the individual's tax history can be known.”
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Under the bill to amend Section 115BBE of the Income Tax Act, deals with unexplained deposits in banks will be taxed. According to the amendment, tax officers can now tax such deposits at 60% (plus cess) as against 30% earlier. The new tax law is applicable from April 1, this year.
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