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Income tax department to use analytics to look for discrepancies in bank accounts -Sachin Dave

-The Economic Times

MUMBAI: For the first time, the income-tax department will use big data analytical tools to go through personal bank deposits to segregate black money holders from genuine tax-payers, two people in the know have said.

While the government has used big data analytical tools for corporate tax reporting in some cases in the past, this is the first time that it will use analytics on such a large scale to sieve through personal taxes.

“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 said.

It is expected that the tax department would collate and compare data from corporate tax and personal tax as well.

Big data analytical tools will compare the tax returns of individuals, tax paid by companies owned by some people and other tax-related data with data collected from banks on how much money was deposited by individuals.

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