IT dept asks taxpayers to e-verify deposits made post demonetisation

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New Delhi, February 2: Five weeks after expiry of demonetisation deadline, IT department has clear a bit of mist on question how would government check the large deposits made after demontisation.

Yesterday the finance Ministry had informed that, in the first phase of Operation Clean Money discrepancy in 18 lakh accounts have been identified and government expect these people to reply within 10 days of the query made to them.

The income tax department has decided to verify online the deposits made in these accounts post demonetisation and respond to queries of any mismatch.

According to Central Board of Direct Taxes (CBDT), data analytics has been used for comparing the demonetisation data with information in the department’s databases.

This is done to avoid undue harassment and reduce compliance cost for the taxpayers while optimising its resources.

A user guide is being issued to help the taxpayers.

The information on cash deposits is now available for online verification “in the e-filing window of the PAN holder (after log in) at https://incometaxindiaefiling.Gov.In”, the user guide said.

The cash deposited in an assessee’s account can be verified using the link ‘Cash Transactions 2016′ under ‘compliance’ section of the website. “The details of transactions related to cash deposits during 9th November to 30th December 2016 will be displayed,” it said.

The taxpayer needs to confirm that the bank account relates to his PAN. In case the account does not relate to the PAN, a suitable option can be selected and information will go to the tax department.

If the account belongs to the PAN holder but the value of the deposit is incorrect, a correct entry can be submitted online.

The website also provides for the taxpayer to explain the source of cash deposit digitally without visiting the income tax office, it said.

The user guide says the taxpayer is required to give details if cash is claimed to be withdrawn from the bank account. Details should also be mentioned if the cash is received from other persons in the form of cash sales, loan, gift or donations.

In case the cash is claimed to be out of receipts exempt from tax (agricultural income etc but excluding cases of gift and donation), further details can be provided under remarks.

“If receipts exempt from tax are not in line with the taxpayer profile or other available information, the case may be selected for verification based on risk criteria,” the user guide said.

If cash is claimed to be out of earlier income or savings, further details can be provided under remarks. If this information is not in line with the taxpayer profile or other available information, the case may be selected for verification based on risk criteria.

The Tax Department will select some cases for verification based on risk criteria. “If the case is selected for verification, request for additional information and its response will also be communicated digitally (either by e-mail or SMS),” the guide said.

The response of taxpayer will be assessed against available information and in case explanation of the source of cash is found to be justified, the verification will be closed without any need to visit Income Tax office.

If the cash deposit is declared under the tax amnesty scheme, PMGKY, the verification will be closed.

Wefornews Bureau (With PTI inputs)

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