Operation Clean Money: Transforming Tax Compliance in India

Introduction: Launched post-demonetization, Operation Clean Money aims to ensure tax compliance and transparency in cash transactions. First Phase Highlights: Preliminary Assessment: Scrutinizing depositors' accounts and comparing them with tax profiles. E-Verification Process: Prompting account holders to explain transactions online, yielding responses from 13.33 lakh individuals.

Targeted Enforcement Actions: Survey, referral, and search actions led to detection of undisclosed income and asset seizure. Second Phase Objectives: Comprehensive Risk Assessment: Analyzing taxpayer data to identify high-risk cases. Differentiated Treatment: Tailoring enforcement actions based on risk levels.

Enable Citizen Engagement: Facilitating communication and cooperation between taxpayers and tax authorities. Risk Categorization: High Risk: 1 lakh, Medium Risk: 7.54 lakh, Low Risk: 5.95 lakh, Very Low Risk: 3.14 lakh.

Operation Clean Money Portal Features: Transparent Tax Administration: Updates on cases and thematic analysis reports. Comprehensive Information: Detailed guides, FAQs, and training materials for clarity. Citizen Engagement: Opportunities for pledges, education, experiences sharing, and feedback.