Income Tax Department launched the second phase of Operation ‘Clean Money’ on 14th April 2017 to detect the flow of black money into the banks after demonetization. During this phase, 5.56 lakh new persons have been identified whose tax profiles are inconsistent with the cash deposits made by them during demonetization period. The department used the information received under the statement of financial transactions (SFT) that contains the details of high-value transactions to identify these persons. Also during the first phase of operation clean money(OCM), govt announced that the e-verification of large cash deposits made during 9th November to 30th December 2016 would be scrutinized. During this, 17.92 Lakh persons were identified for e-verification of large cash deposits, out of which only 9.72 lakh people had submitted an online response.
Also, another 1.04 lakh persons who did not disclose all bank accounts during e-verification in the first phase of OCM have been identified. The information in respect of these cases and accounts are available in the e-filing window of the PAN holder (after log in) at the portal https://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. The complete process along with screenshots are explained here. All identified persons are also being informed through e-mail and SMS for submitting a response online. Also post demonetization, the IT Department had made a mandatory rule to disclose the details of cash deposited in the time period from November 9 to December 31, in the bank accounts aggregating to Rs 2 lakh or more while filing the income tax return.
The taxpayer should ensure that ITR is compliant with amount deposited in bank accounts during the period of demonetization and while computing income, the amounts so deposited are considered/taken into account while paying taxes. Cash deposits made in the above period may thus be fully and truly disclosed in the ITR.
Portal of operation clean money:The government launched the Portal of Operation Clean Money (https://www.cleanmoney.gov.in) on 16th May 2017 having following features:
If you are a PAN holder you can view the information using the linkin “Cash Transactions 2016” under “Compliance” Section of the portal