On 8th Nov-16, when honorable Prime Minister of India Narendra Modi began his first ever televised address to the nation, there was a great curiosity among the people to know what it was all about. But suddenly there was a shock to the nation when PM announced that from the same day the Rs.500 and Rs.1000 currency notes would be discontinued to track black marketers and the black money they carry. He also announced that anyone having money in these denominations can get them exchanged or deposit them in their accounts with some limitations that were also declared. This is one of the latest Big data application in Banking sector.
Now the question arises – How is the government or IT department going to track the black money that has been deposited and how will they segregate black money holders from genuine tax payers? With more than 1.25 Billion populations and 100s of millions of bank accounts, it is a big question that how IT department will find out discrepancies? Similar to Software industry Income Tax department is also going to use latest and hottest technology BIG DATA.
It is practically impossible for IT officials to manually compare tax/account data with the data that it is collecting from banks. Big Data Analytics is being used to look into the inconsistencies which will then be thoroughly inspected by tax officials. This is the first time that our government will use Big Data analytics on such a large scale to sieve through personal taxes.
The Big Data tools won’t be just used to collect details about the money being deposited by individual but it will also be used to gather information like tax paid by the individual in past years (could be decade), corporate tax that his company has paid, number of employees he has in his company and if they have also deposited any money recently and other tax related data. If discrepancies are observed, these Big Data tools will raise red flags/alerts. This would help tax officials to finally come to conclusion regarding his genuineness or be a black marketer and then they could issue notices to individuals based on this after December 31.
As Big Data can handle huge volumes of data in the range of PBs or 100s of trillions of records, it will help IT professionals to scrutinize the Transactions / Account details / Tax information efficiently and quickly. Learn more uses of Big data in the Banking sector.
Let us hope the government gets success in their mission to find out black money holders and BIG DATA will do a miracle in “MODIfying the nation”.