Project Insight to Curb Black Money (Download PDF)

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The Union Finance Ministry launched data mining, big data analytics ‘Project Insight’ to monitor high value transactions to detect tax evaders. Government signed contract with L&T Infotect Ltd to implement the project.

Data Analytics
  • In line with efforts to curb black money like ‘Operation Clean Money’ after demonetisation, Income Disclosure Scheme, GST implementation, and amendment of Data Exchange rules (DTAA) with other countries

Project Insight

  • Use data mining, big data analytics from social media platforms to detect mismatches between spending pattern and income declaration.
  • PAN (Permanent Account Number) and Aadhaar key identifier for analyzing transactions
  • Catch tax evaders in non-intrusive manner using technology without search and seizure.
  • Allow government to collate and analyse across all databases- IT returns, TDS/TCS statements and statements of transactions received from financial institutions.
  • Has built in system for reporting compliance management ensuring timely and accurate reporting by third party reporting entities like banks.
  • Set up data exchange mechanism for all government departments.
  • Has built in system to leverage Foreign Account Tax Compliance Act Inter Governmental Agreement (FATCA IGA) and Common Reporting Standard (CRS) .
  • IT Department to set up new Compliance Management Centralized Processing Centre (CMCPC) for handling preliminary verification, campaign management, generation of bulk letters and notices and follow-up.

Benefits of Project Insights

  • Project Insights is expected to play a key role in widening tax base
  • Innovatively utilizes the data mining in the data shared across the social channels- like foreign trips, purchases etc. to track tax evaders.
  • Promotes voluntary compliance enable taxpayers to resolve simple compliance issues online without dealing with officers.

What is Data Mining and Big Data Analytics?

  • Data mining is the process of sorting large data sets to identify patterns and establish relationships. Data mining is used to solve problems through data analysis- problems involving large number of people or area. For example, data mining tools can help enterprises predict future trends.
  • Big data analytics examines large and varied data sets to find patterns, correlations, market trends, preferences and useful information to make more-informed business decisions.

- Published/Last Modified on: October 11, 2017

Govt. Schemes/Projects

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