13 Feb Taxman Gives 5 More Days
Taxman Gives 5 More Days To Explain Cash Deposits Above Rs. 2.5 Lakh In Old Notes
“Time limit for filing of online response to cash deposit data extended. Now you can file your details by February 15, 2017 – Operation Clean Money,” the I-T department said in a tweet.
Earlier, on January 31, I-T department had asked the identified 18 lakh taxpayers, who were alerted through SMS and mails, to respond to the queries within 10 days.
According to the tax officials, the transactions carried out by these taxpayers post demonetisation seemed out of line as compared to their taxpayer profile.
The process has been labelled as “Operation Clean Money”, in which data analytics has been made use of to analyse the data received between November 9 and December 30, 2016.
“There would be many more such lists… second, third, fourth, fifth… This is only the first list. We will go for verification from the highest deposits to the lower ones,” Revenue Secretary Hasmukh Adhia had said earlier.
However, according to some reports, the deposits up to Rs. 2.5 lakh would not be questioned.
The I-T Department has enabled online verification of the deposits, that are under the scanner, to reduce compliance cost for the taxpayers while optimising its resources and put an end to ‘Inspector Raj’.
The taxpayers covered in this phase need to submit their response on the portal in order to avoid any further notice from the I-T Department and enforcement actions.
The information in respect of these cases has been made available in the e-filing window of the taxpayer at the government’s e-filing portal.
A detailed user guide and quick reference guide is available on the portal to assist the taxpayers in submitting online response.
“Based on the taxpayers’ explanation, data analytics will be used to select cases for verification. If the case is selected for verification, request for additional information and its response will also be communicated electronically,” the I-T department had earlier said.
The response of taxpayer will be assessed against available information. In case explanation about the source of cash is found justified, the verification will be closed without any need to visit income tax office.
The verification will also be closed if the cash deposit is declared under the Pradhan Mantri Garib Kalyan Yojna (PMGKY).