The tax department will begin gathering virtual information to trace black money with ‘Project Insight’, likely to be launched next month. It will use big data analytics to match data from social media sites to deduce disparities between spending pattern and income declaration. The taxmen will analyze mismatches to trace tax evasions and black money, an official said.
The government has also made linking of PAN with Aadhaar mandatory. It will help them get a 360-degree view of a person’s revenue and assets.
Last year, the tax department had signed a pact with L&T Infotech for implementation of Project Insight. It is designed to reinforce the non-intrusive information driven approach for improving tax compliance.
“Currently beta testing is on and the integrated platform for Project Insight should be launched by next month,” the official said.
Project Insight has been started for data mining, collection, and collation and processing of such information for effective risk management with a view to broaden and deepen the tax base. It will aid the taxmen to observe high-value transactions and end the flow of black money.