I-T extends response window for deposit details to February 15https://indianexpress.com/article/business/economy/i-t-extends-response-window-for-deposit-details-to-february-15-4519978/

I-T extends response window for deposit details to February 15

In a set of FAQs to answer the queries received with regard to suspicious deposits made post note ban, the tax department said assessees should give "explanations" of the source of cash.

Extending the date for replying to the queries on cash deposits during the demonetisation period to February 15, the income tax department has asked people to declare details of cash donations or gifts of Rs 20,000 or more to reduce the chances of further scrutiny. In a set of FAQs to answer the queries received with regard to suspicious deposits made post note ban, the tax department said assessees should give “explanations” of the source of cash.

If the cash deposited is from multiple sources or arises from cash in hand as on November 8, the assessee while filing the reply will have to give segregated details — cash withdrawn from bank, cash received from identifiable persons with or without PAN, cash received from unidentifiable persons and cash out of earlier income or savings.

The assessee can also report how much he has deposited or will deposit under the PMGKY scheme, in which he can pay 50 per cent tax and penalty and come clean. It said cash received by people exempt from taxes like farm income can be shown under the head ‘cash receipts exempt from tax’, only if they are not involved in business.

“Cash out of receipts exempt from tax is expected to be used for taxpayers not involved in business who have received cash out of exempt income, for example agricultural income,” the department said. In case the assessee has received advance salary, the FAQ said he will have to give the name and respective details of the employer from whom the payment in cash has been received while filing the response on the I-T portal.

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The tax department said that in case the deposits have been made by unknown persons, the FAQ said the assessee should disclose such deposits with his remarks in a separate column. In case a taxpayer has deposited someone else’s cash in his account, he will have to disclose the “name and respective details of the person to whom the cash belongs”. With regard to the charitable trusts, the I-T department said they should disclose source of cash receipts and donations under various heads like cash withdrawn from bank accounts, received from identifiable persons with or without PAN and also cash receipt from unidentifiable persons.

With regard to professionals, it said they should give the details of cash received from identifiable persons with or without PAN and also from un-identifiable persons. Also, if the cash receipt is more than Rs 20,000 from a single person, the details should be furnished.

In case the cash deposited has already been disclosed under the Income Declaration Scheme, 2016, the amount should be shown under cash out of earlier income or savings with details. With regard to the money received by petrol pumps, toll plazas and hospitals which were permitted to receive old notes beyond November 8, the FAQ said the details of cash sales of business may be provided. The nature of business will be considered while assessing
the response.

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