Operation Clean Money: Software To Trawl Large Deposits After Notes Ban

New Delhi: Big deposits of Rs 500 and Rs 1000 notes in the days after Prime Minister Narendra Modi's currency ban are coming under the scanner with the use of a new government software. Swacch Dhan is inspired by Swaach Bharat -- if one was about Clean India, the other is about Clean Money, a reflection of the government's anti-corruption drive. The November 8 demonetisation decision too was presented as a drive to clean up black money.

Under Operation Clean Money or Swachh Dhan Abhiyan, the Income Tax department has already identified 18 lakh people who have made uncharacteristically large cash deposits -- mostly over Rs 5 lakh -- between November 8 and December 30. They have been sent emails and phone text messages that seek explanation about the source of funds and a response within 10 days.

In absence of a response, they will receive a notice from the tax department or further action.

The Swachh Dhan Abhiyan will help track all the accounts in which money has been deposited, said the chairman of Central Board of Direct Taxes or CBDT, Sushil Chandra. "We have hired the data analytics and we will identify the ultimate beneficiaries even in layered accounts," he added.

The data compiled shows that since November 8, there were over 1 crore accounts where cash above Rs 2 lakh have been deposited, Overall, around Rs 8 lakh crore has been deposited in these accounts.  
But the tax department, officials indicated, is walking a tightrope - trying to crack down on tax evasion and fending off charges of harassment.

Revenue Secretary Hasmukh Adhiya said people have been apprehensive of a return of the "Inspector Raj" as the tax department will have data about all the deposits. "But the new programing software will enable e-verification of all bank deposits during the period of demonetisation," he said.