Operation Clean Money 2.0

After getting poor response to the Pradhan Mantri Garib Kalyan Yojana, an income declaration scheme, the Income-tax department has again launched the second phase of operation ‘Clean Money’ to detect black money post-demonetisation; by issuing notices to 60,000 entities including 1,300 high-risk persons. IT Department detected Rs.9334 crore undisclosed income post-demonetisation till Feb 28 said CBDT.

A senior officer said advanced data analytics has been used to identify suspect cash deposits before launching the latest edition of the operation. As part of the first phase of the ‘Operation Clean Money’, launched on January 31 this year, the department had sent online queries and investigated 17.92 lakh persons out of which 9.46 lakh persons have responded to the department. Several locations were raided in Delhi. 200 Shell companies were detected and most of them converted black money.

By this move, the IT department aims to catch hold of tax evaders who could have deposited large sums during the demonetization drive. While the first phase of the so-called Operation Clean Money scrutinized cash deposits of over ~10 lakh, the second phase will examine deposits between Rs.5 lakh and Rs.10 lakh. A data analytics firm has already started the analysis of such cash deposits made during demonetisation drive.

The data analytics firm has been analysing the deposits in bank accounts before and after November 8 last year — the day the government decided to junk 86 per cent of the currency in circulation. this exercise will also attempt to link individuals with multiple accounts or PAN numbers who have deposited large sums of money. The I-T Department has begun analysing accounts which show a pattern of deposits or have some common linkage like common address, PAN, telephone number, email address or name.

While standalone deposits are not under scrutiny right now, IT department is also likely to ignore deposits below five lakhs. In this phase people who deposited unaccounted cash in denominations of Rs.500 and Rs.1000.

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