The Directorate of Income Tax in India is undertaking an initiative called ‘Project Insight’ to track down tax evaders using data analytics software on transactions.
Having floated a tender worth Rs 150 crore to buy data analytics software and infrastructure relating to it, the Government has attached a non-disclosure agreement to the tender.
A large part of the 2015 budget was the focus on reducing the amount of black money and tax evasion. The requirement of the national PAN card in transactions of over Rs 1 lakh was one of the measures that was implemented.
With the data being collected on these transactions, data analytics software could cross reference these with tax returns, creating a financial profile and suggesting the appropriate course of action.
This would automate processes that took a lot of time earlier allowing tax collectors to concentrate on recovering money owed to the Government.