Finance Minister Arun Jaitley launches clean money portal as govt tightens grip on tax evaders

The Centre has turned its heat on tax evaders with a new portal to investigate them.

The portal designed by the Central Board of Direct Taxes (CBDT) will identify those who have made large deposits or purchases and which are not in line with declared income as a follow-up to Operation Clean Money, launched against black money by the Center.

" It is time of reckoning for those who evade tax. We want to change habit from non-tax compliant to tax compliant," Finance minister Arun Jaitley said in a press briefing.

In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile.

How does it plan to do it
1) The CBTD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources. The information in respect of these cases is being made available in the e-filing window of the PAN holder (after log in) at the portal https://incometaxindiaefiling.gov.in.

2) The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office.

3) Email and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal. Taxpayers who are not yet registered on the e-filing portal (at https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link. Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.

4) Data analytics will be used to select cases for verification, based on approved risk criteria. If the case is selected for verification, request for additional information and its response will also be communicated electronically.

5) The information on the online portal will be dynamic getting updated on receipt of new information, response and data analytics.

The portal will facilitate communication between individuals and tax authorities via permanent account number (PAN). The department is looking to keep the process non-intrusive as possible with emphasis on e-assessment to keep human interaction to the minimum.

Jaitley said that through data mining, the government has been able to unearth an additional 91 lakh tax deposits, adding that this was another step in identifying non-compliant tax payers. "Those who pay honestly and on time have no reason to worry," he said.

The second phase of Operation Clean Money will focus on high-risk individuals who made highvalue transactions and will be subject to detailed investigations. The department has already identified more than 60,000 such persons, based on data analytics.

Operation Clean Money was launched soon after demonetisation to ensure that those with undeclared incomes were brought into the tax fold. The department identified about 1.8 million persons who were contacted through SMSes and emails and asked to explain their deposits, pay tax or declare past undisclosed income through the Pradhan Mantri Garib Kalyan Yojana.