New Delhi, January 27, 2017

The tax department aims to use these sets of data analytics to promote voluntary filing in PMGKY using targeted campaign and create deterrence for high risk persons/groups not availing PMGKY.

The Income Tax Department has invited bids for selection of Managed Service Provider (MSP) for matching and analysis of demonetisation data with tax returns and effective utilisation of demonetisation data and analytical outputs. The tax department aims to use these sets of data analytics to promote voluntary filing in Pradhan Mantri Garib Kalyan Yojana (PMGKY) using targeted campaign and create deterrence for high risk persons/groups not availing PMGKY.

“Income Tax Department intends to leverage technology and deploy data analytics for matching and analysis of demonetisation data with return/other information for effective segmentation, grouping and prioritization. In addition, Income tax Department plans to implement new business processes to ensure effective utilization of demonetisation data and analytical outputs to achieve desired outcomes,” the request for proposal by tax department said.

As a part of post-demonetisation exercise, I-T department needs to analyze instances of deposits and seek information to identify possible cases of tax evasion. The tax department intends to utilize large volumes of demonetisation related data in form of Statement of Financial Transactions, non-PAN data in Form 61, Suspicious Transaction Reports, Cash Transaction Reports, Information Request among others.

The MSPs will design and operationalise business processes through a suitable IT enabled mechanism to assist in improving taxpayer response rates, response quality and bring all identified cases to logical conclusion, the tax department said.

Earlier this month, the tax department had asked banks to give statement of financial transactions detailing cash deposits between November 10-December 30, 2016 along with figures of deposits in similar accounts for the period April 1-November 8, 2016, by January 31, 2017. The tax department has asked banks to report cash deposits in accounts of a person aggregating to Rs 10 lakh in a financial year along with details regarding credit card bill payments made by any person of Rs 1 lakh or more in cash and Rs 10 lakh or more in a financial year.

The data analytics MSP would be required to design and operationalise analytical solution for collation of data received from banks, post offices and other sources for linking of information and identification of duplicate data.

They would also be required to match and integrate the PAN based demonetisation data with information in Income Tax database such as I-T returns, TDS information, Third Party Reporting, tax payments, activity and response on the portal to build a comprehensive profile for the taxpayer.

The firms would also be required to cluster PAN linked and non-PAN demonetised data using identified relationships as well as common address, mobile number, email address, bank branch etc.

The tax department has floated tenders to select two MSPs to help in data analytics relating to demonetisation data and one MSP for Business Process Management and the bids are required to be submitted by February 3.

As per reports, the tax department has detected deposits worth Rs 3-4 lakh crore of tax evaded income during the 50-day deposit window available after the government’s decision to scrap high-denomination currency notes of Rs 500 and Rs 1,000.

[The Indian Express]