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Over 60,000 persons, including 1300 high risk persons, identified for investigation into claims of excessive cash sales under CBDT's OCM

Capital Market 

Under the Operation Clean Money (OCM), more than 60,000 persons, including 1,300 high risk persons, have been identified for investigation into claims of excessive sales during the period. More than 6,000 transactions of high value property purchase and 6,600 cases of outward remittances shall be subjected to detailed investigations under OCM. All the cases where no response is received shall also be subjected to detailed enquiries.

Extensive enforcement action has been taken by the including search and seizure and surveys largely based on the information received during the period. More than 2,362 search, seizure and survey actions have been conducted by the Department (ITD) during 9th November 2016 to 28th February 2017, leading to seizure of valuables worth more than Rs. 818 crore, which includes of Rs. 622 crore, and detection of un-disclosed of more than Rs. 9,334 crore. More than 400 cases have been referred by ITD to the (ED) and the (CBI). Surveys have been conducted in more than 3400 cases by Assessment Units.

The impact of action is already visible in the increase of 21.7 % in the returns of received in FY 2016-17, 16% growth in Gross Collection (the highest in the last five years), 14% Growth in Net Collection (the highest in last three years) and above 18%, 25% and 22% growth in Personal Tax, Regular Assessment and Self-assessment respectively.

The Department (ITD) launched Operation Clean Money (OCM) on 31st January 2017 to leverage technology for e-verification of deposits made during the demonetization period i.e. 9th November to 30th December 2016. It is a unique operation being conducted by the Income-Department (ITD) through use of advanced data analytics allowing for optimization of resources and causing minimum inconvenience to the taxpayers.

The First Phase of Operation Clean Money involved e-verification of deposits made in the banks.

The entire phase was conducted online, wherein 17.92 lakh persons, who entered into transactions that did not appear to be in line with their profile, were identified and requested for on-line responses on such transactions. 9.46 Lakh persons responded on pre-defined parameters of sources of the deposits. Online queries were raised in 35,000 cases and on-line verification was completed in more than 7,800 cases. It has been decided to close the verification in cases where explanation of source of was found to be justified. In cases where the deposit has been declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY), the verifications would also be closed.

The operation has now moved into the Second Phase with identification of high risk persons for detailed investigations by the Department. The identification has been done through use of advanced data analytics, including integration of data sources, relationship clustering and fund tracking. The high risk categories identified include businesses claiming sales as the source of deposits which is found to be excessive compared to their past profile or industry norms; large deposits made by or Public Sector Undertaking (PSU) employees; persons who have undertaken high value purchases; persons who have used shell entities for layering of funds; and where no responses were received.

One of the stated objectives of was 'elimination of Black Money that casts a long shadow of parallel economy on our real economy'. The OCM and the subsequent enforcement actions being undertaken by the ITD shall continue to achieve the goal set out by the The opportunities created by demonetization is being used by the ITD for widening and deepening of the base and create deterrence, not seen before, and to curb generation of black money in the Indian economy. The complete exercise of examining all the doubtful and non-compliant accounts may take more than one year but with the help of technology and continuous enforcement action all the liable accounts will be brought to

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 17 2017. 11:12 IST