5.56 lakh people to be probed for cash-deposits during demonetization

14 Jul 2017 | By Ramya Patelkhana
Second Phase of Operation Clean Money

In the second phase of Operation Clean Money, the Income Tax Department found that cash transactions of 5.56 lakh more taxpayers in the demonetization window didn't match with their income profiles.

The identified persons would receive emails/SMS so that they can submit their response on the e-filing portal.

The operation was launched on 31 Jan'17 to fight against black money.

In context: Second Phase of Operation Clean Money

Phase-IFirst phase of Operation Clean Money

The Income Tax Department had launched Operation Clean Money on 31 Jan'17 aimed at checking black money generation post-demonetization.

Under the first phase, high-value cash deposits made between 9 Nov-30 Dec'16 were electronically verified.

Demonetization transactions and information in Income Tax Department's databases were compared, and 18 lakh people were identified, whose deposits and tax profile showed huge discrepancies.

14 Apr 2017I-T department launches second phase of the operation

I-T department initiated the second phase of the operation and said that more than 60,000 taxpayers, including 1,300 high-risk individuals, will be investigated.

The department said that the Phase-II will address high-risk cases and decide an appropriate enforcement action.

The Central Board of Direct Taxes had then revealed more than Rs. 9,334 crore undisclosed income was detected between 9 Nov'16 and 28 Feb'17.

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Jaitley launches Operation Clean Money portal

In May, Finance Minister Arun Jaitley launched Operation Clean Money's website He said, post demonetization, an unaccounted income of Rs. 16,398cr lost anonymity and also 91 lakh more persons were brought under the tax net.

14 Jul 20175.56 lakh people to be probed for cash-deposits during demonetization

1.04 lakh persons did not disclose bank account information

Details1.04 lakh persons did not disclose bank account information

The I-T officials identified these additional taxpayers with the help of information received from banks under the Statement of Financial Transactions (SFT).

The department also identified 1.04 lakh taxpayers who didn't disclose all bank accounts during the first phase.

A total of 17.92 lakh persons were identified for e-verification of high cash deposits earlier of which only 9.72 lakh submitted their response.

Cash DepositsIdentified taxpayers need to submit details on e-filing portal

The I-T department said the identified taxpayers can access all the relevant information on the e-filing portal under the 'Compliance' section.

They will have to provide information about their cash deposits above Rs. 2 lakh during the 50-day window in their income tax return.

They can give their explanation online on the portal without having to visit I-T office.

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What Next?Submitted transaction details to be matched with I-T data

After the identified individuals submit their cash deposit details online, the same would be matched with the information available with I-t department.

They must ensure that income tax return is compliant with the deposits.

The department said transaction details must be fully disclosed in the ITR.

After assessing responses, the department wouldn't take any action on those taxpayers who submit a satisfactory explanation.