The Income Tax Department has identified 5.56 lakh new persons whose tax profiles were found to be inconsistent with the cash deposits made by them during the demonetisation period. The operations were carried out during the second phase of Operation Clean Money (OCM).
Another 1.04 lakh persons, who did not disclose all their bank accounts during e-verification in the first phase of OCM, have also been identified. In the first phase, 1.79 million people were identified for e-verification as they had made large cash deposits. Out of these, 9.72 lakh people had submitted their online response.
The information regarding the cases and accounts identified has been made available in the e-filing window of a PAN holder at the portal https://incometaxindiaefiling.gov.in. A PAN holder can view the information using the link "Cash Transactions 2016" under "Compliance" section of the portal. Taxpayers will be able to submit online explanation without visiting income tax offices. All identified persons are being informed via e-mail and SMS to submit their response online.
Under Operation Clean Money, details of the cash deposited in bank accounts aggregating to Rs 2 lakh or more are required to be given in the Income Tax Return (ITR). This information will be matched with the information in possession of the Income Tax Department.
A taxpayer's ITR should be in sync with the amount deposited in bank accounts during demonetisation, and while computing one's income, the amounts so deposited are considered/ taken into account for tax payment.