Suspicious bank deposits: I-T dept floats tender for MSPs

In an attempt to identify the fake deposits and resultant tax evasion during the note-ban period, the Income Tax department has floated a request for proposal to select two managed service providers (MSPs) for data analytics.
As per the RFP or the request for proposal, the department intends to select two MSPs to help in data analytics relating to demonetisation and one MSP for business process management.
The data to be analysed by MSP include cash deposited in banks between November 9 and December 30, in one or more current account of a person or Rs 2,50,000 in one or more accounts of a person.

The selected MPS will also have to analyse the information about cash deposits during the pre-note ban period between April 1 and November 9.
This data source can enable identification of accounts where the cash deposited after the note-ban announcement is not in line with the earlier period. Expected volume of such accounts is 30-40 lakh.
Moreover, 20-30 lakh non-PAN data are also likely to be analysed by the agencies as part of the assignment.

Suspicious transaction reports (STRs) are submitted to the Financial Intelligence Unit (FIU) when the reporting entity detects suspicion which is primarily based on implementation of various red flag indicators. Expected volume of such transactions to be analysed is around 2 lakh STRs having 2-4 lakh unique accounts.

Cash transaction reports (CTRs) are submitted to FIU when cash deposits or withdrawal in the account exceeds Rs 10 lakh during a month. Expected volume of such reports to be analysed by the selected MSPs is around 30-50 lakh having 20- 35 lakh unique accounts.
According to the department, reporting entities are also required to provide specific data on the basis of specific requests. Such kind of specific types of deposits, numbering over 1 crore will also be analysed by the MSP.
As part of post-noteban exercise, the I-T department needs to analyse instances of deposits and seek information to identify possible cases of tax evasion, the RFP document, floated on January 24.

It will be opened for pre-proposal qualification on February 3, the department said.
The department intends to enhance its capability to utilise large volumes of demonetisation related data which include statement of financial transactions in Form 61A, non- PAN data in Form 61, suspicious transaction reports, cash transaction reports and information request by leveraging services of experts in data analytics and business process management, it added.