Note Ban: I-T to Ask 18 Lakh People to Explain Deposits Via Email

I-T officials’ “Operation Clean Money” is a crackdown on large deposits made after demonetisation on 8 November.

According to I-T officials, transactions carried out by 18 lakh taxpayers post demonetisation seem out of line. (Photo: Reuters)

Commencing the process of crackdown on large deposits made after 8 November, the Income Tax Department has identified 18 lakh taxpayers who will be served notices seeking explanation within 10 days.

According to tax officials, the transactions carried out by these taxpayers post demonetisation seem out of line.

The process has been labelled as "Operation Clean Money", in which analytics has been made use of, for the data received between 9 November and 30 December 2016, Revenue Secretary Hasmukh Adhia told mediapersons at a briefing on Tuesday.

Data analytics has been used for comparing the demonetisation data with information in the department’s databases.

Central Board of Direct Taxes statement

"In the first batch, around 18 lakh persons have been identified in whose cases, cash transactions do not appear to be in line with the taxpayers’ profile. The I-T Department has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources," the statement said.

I-T Demands Online Response

The information pertaining to these cases will be made available in the e-filing window of the taxpayer at the government's portal.

"E-mail and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal," it said. A detailed user guide and quick reference guide is available on the portal to assist the taxpayers in submitting online response.

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, it added.

(With IANS and PTI inputs)