1. 5.56 lakh people face tax probe for large cash deposits during demonetisation

5.56 lakh people face tax probe for large cash deposits during demonetisation

The Income Tax Department (ITD) has identified 5.56 lakh new persons in the 2nd phase of Operation Clean Money for e-verification of large cash deposits.

By: | Updated: July 14, 2017 5:57 PM
demonetisation, post demonetisation situation, probe against banned currency holders, action on banned currency holders These are the persons whose tax profiles were found to be inconsistent with the cash deposits made by them during the demonetization period, the Finance Ministry said today.

The Income Tax Department (ITD) has identified 5.56 lakh new persons in the 2nd phase of Operation Clean Money for e-verification of large cash deposits. These are the persons whose tax profiles were found to be inconsistent with the cash deposits made by them during the demonetization period, the Finance Ministry said today. Another 1.04 lakh persons who did not disclose all bank accounts during e-verification in the first phase of OCM have also been identified. It may be noted that the Income Tax Department (ITD) is pushing additional cases of high cash deposits in the second phase of Operation Clean Money, which was initiated by ITD on the 31st January, 2017 with the launch of e-verification of large cash deposits made during 9th November to 30th December 2016.

The information in respect of the cases and accounts identified has been made available in the e-filing window of the PAN holder at the portal http://incometaxindiaefiling.gov.in. The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office. All identified persons are being informed through Email and SMS for submitting response online.

In the first phase, 17.92 lakh people were identified in whose case cash transactions did not appear in line with the tax payer’s profile. According to the tax department, up to 12th May, 2017, more than 9.72 lakh taxpayers had submitted their response without visiting the Income tax office. Those taxpayers had provided response for 13.33 lakh accounts involving cash deposits of around Rs 2.89 lakh crore. The ITD had also assured that the online responses had been assessed and no further action would be taken in cases of satisfactory explanation.

However, at the same time, ITD had also identified 3.71 lakh new accounts relating to 1.58 lakh taxpayers who made partial declaration of accounts/amounts in their earlier responses. In addition to the earlier around 18 lakh cases, 5.68 lakh new cases had been identified for the e-verification process.

Finance Minister Arun Jaitley had also officially launched the portal of Operation Clean Money (http://www.cleanmoney.gov.in) in New Delhi in May this year.

Urging all taxpayers and citizens to actively participate in the Operation Clean Money for a common cause of building a proud nation, which runs on the strength of the honest taxpayers, the Income Tax Department had then announced that in the Phase II of Operation Clean Money, the high-risk cases will be handled by selecting appropriate enforcement action (verification, search, survey, scrutiny) and a targeted campaign will also be initiated in cases with identified risk issues.

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