Project Insight!-Government’s Digital Army Against Black Money
1 month ago Ishan Chourey 0
The Income Tax Department of India to launch the much awaited “Project Insight”. The $156 Million digital anti-corruption program will utilize data analysis technology to catch tax defaulters, money launderers and help trace the black money.
If you upload a picture of your new shiny car or update your display picture from your trip to Paris or in general upload any picture on Facebook, Instagram, or any other social media platform, the IT Department will keep a virtual eye on you.
In its war against black money, the government will now use “Project Insight” to digitally trace undeclared properties, incomes, and tax evasions using social media.
How Does It Work:
“Project Insight” will create a virtual pool of information which will be directly linked with all the banks across the country. This information will be collected on the basis of photos uploaded and shared across various social media platforms.
On the basis of your posts and shares, your expenses and incomes will be monitored. These transactions will e closely monitored with your bank and any mismatch in it will rais an alarm.
PAN card linked with AADHAR information will be the key identifier used by IT department to analyze patterns of expenditure and transactions and filter out defaulters.
The use of data mining and big data analytics, the integrated information pool will ensure the IT department in search and seizure operations to catch tax evaders. This non-intrusive manner of raids will help in reducing the time and manpower as compared to that required in intrusive.
Benefits of this Digital Army:
Project Insight will play a key role in the widening of tax base and data mining to track tax evaders. It is estimated to increase the tax collection by 40%.
It will be leveraged for implementation of Foreign Account Tax Compliance Act Inter Government Agreement (FATCA IGA) and Common Reporting Standard (CRS).
Due to its reporting compliance management system, Project Insight will ensure swift and accurate reporting to concerned banks and financial institutions. This will help in freezing the defaulters’ assets quickly.
The success of the Beta Testing:
Since its announcement in November 2016, Project insight has gained paces and improved itself on tremendous levels.
More than 900 raids were conducted based on the data collected during the initial phases from November 2016 to March 2017. This resulted in unearthing of more than Rs.8000 crore undeclared income, Rs. 103 crore worth property was seized and resulting in a conviction of more than 200 defaulters.
What will Project Insight Monitor:
Cars: To purchase a car, we need to link it to our PAN card. According to statistics, 25-30 lakh people declared their income above 10lakhs a year. This data doesn’t match with the data collected on sales of cars, which is at-least twice the number. Project Insight will help bridge this gap in data and find out the defaulter.
Mutual Funds: Mutual funds are considered the best investment plans for common man. But it is also a major source of tax evasion and to convert black money to white. Project Insight will keep a track on all the shares and stock investments.
Un-Named Properties: Property investments like summer homes, farm houses, and beach houses will be on Project Insight’s radar. Photos clicked in front of any property will be cross referenced with the investments of the concerned person.