1. Black money crackdown: Narendra Modi govt launches ‘Swachh dhan abhiyan’, puts 18 lakh IDs under scanner

Black money crackdown: Narendra Modi govt launches ‘Swachh dhan abhiyan’, puts 18 lakh IDs under scanner

Launching the “Swachh dhan abhiyan” or Operation Clean Money on Tuesday, the government said it had identified 18 lakh persons who deposited amounts of Rs 5 lakh or more between November 9 and December 30 but whose income profiles did not match the amounts deposited.

By: | New Delhi | Updated: February 2, 2017 10:49 AM
Following up on their efforts to unearth unaccounted money, the IT authorities are scrutinising these accounts and have asked taxpayers to revert to their queries in 10 days. (Reuters) Following up on their efforts to unearth unaccounted money, the IT authorities are scrutinising these accounts and have asked taxpayers to revert to their queries in 10 days. (Reuters)

Launching the “Swachh dhan abhiyan” or Operation Clean Money on Tuesday, the government said it had identified 18 lakh persons who deposited amounts of Rs 5 lakh or more between November 9 and December 30 but whose income profiles did not match the amounts deposited.

Following up on their efforts to unearth unaccounted money, the IT authorities are scrutinising these accounts and have asked taxpayers to revert to their queries in 10 days.

In a demonetisation exercise, the government had on November 8 announced that currency notes with denominations of R1,000 and R500 would no longer be legal tender and had asked people to deposit these notes in their bank accounts, allowing for some portion to be exchanged across the counter.

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Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said at a press conference the account-holders whose deposits did not match their incomes, as per data with the department, would be alerted on their e-filing portals. “We will be seeking answers about the source of income,” Chandra said.

The tax department has compared cash deposits made during the demonetisation period with taxpayers’ income profiles to cull out suspicious cases. Should these taxpayers not submit a response within 10 days, the department would initiate legal action.

“The responses of taxpayers will be assessed against available information. If the explanation is valid, the verification will be closed without a visit to income tax office. The verification will also be closed if cash deposits are declared under Pradhan Mantri Garib Kalyan Yojana (PMGKY),” the government said in a statement.

Chandra said more than 1 crore accounts had seen deposits of more than R2 lakh in the last 50 days in 2016. Of these, the accounts of 70 lakh individuals were linked to their permanent account numbers (PAN).

Pointing out that money had lost anonymity after demonetisation, he exhorted depositors to come clean and use the PMGKY to declare any unaccounted income. The department, he said was using data analytics to match the deposits with the department’s database on incomes.

PMGKY is aimed at giving those who may have evaded taxes a chance to come clean. The scheme was launched on December 17 and will remain open till March 31. A person declaring undisclosed income would need to pay a tax of 30%, a penalty of 10% and a PMGKY cess of 33% on the tax. This adds up to 49.9% of the undisclosed income.

Additionally, the person making the declaration would require to deposit 25% of the undisclosed income in the zero-interest scheme for four years.

PMGKY followed close on the heels of Income Declaration Scheme (IDS). IDS, which was open from June to September last year, allowed persons who hadn’t paid full taxes in the past to declare their income and assets. However, unlike PMGKY, the declarants were allowed to avail credit for tax deducted at source against declared income. According to the scheme, the disclosures were to be levied with 30% tax and another 15% as surcharge and penalty, adding up to 45% of the total undeclared income. About Rs 65,250 crore was declared under IDS and 45% of this amount is expected to be collected by the government as taxes. The amount declared under the scheme is, however, likely to be revised downwards to around Rs 55,000 crore.

PMGKY followed close on the heels of Income Declaration Scheme (IDS). IDS, which was open from June to September last year, allowed persons who hadn’t paid full taxes in the past to declare their income and assets. However, unlike PMGKY, the declarants were allowed to avail credit for tax deducted at source against declared income. According to the scheme, the disclosures were to be levied with 30% tax and another 15% as surcharge and penalty, adding up to 45% of the total undeclared income. About Rs 65,250 crore was declared under IDS and 45% of this amount is expected to be collected by the government as taxes. The amount declared under the scheme is, however, likely to be revised downwards to around Rs 55,000 crore.

Under the Lens:

1: 18 lakh individuals with suspicious cash deposits identified; 70 lakh individuals linked with these accounts

2: Identified persons to answer IT queries within 10 days

3: IT’s verification to be closed if deposit declared under PMGKY

4: 1 crore accounts saw over Rs 2 lakh in cash deposits

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  1. Vijeta Malik
    Feb 2, 2017 at 11:26 am
    Nice Information
    Reply

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