Using the information received through Statement of Financial Transactions from banks and financial institutions in the second phase of ‘Operation Clean Money’, the Income Tax Department has identified 5.56 lakh individuals whose tax profiles have been inconsistent with the cash deposits made by them after demonetisation. Another 1.04 lakh persons who did not disclose all bank accounts during e-verification in the first phase of Operation Clean Money have also been identified, the Income Tax department said in a statement.
In the first phase of Operation Clean Money launched on January 31 this year, 17.92 lakh persons were identified for e-verification of large cash deposits, of which 9.72 lakh people had submitted online response, the statement said. At the time of launch of the second phase of Operation Clean Money, the I-T department had said it will investigate over 60,000 individuals, including 1,300 high risk cases.
The high risk categories identified included businesses claiming cash sales as the source of cash deposits which were found to be excessive compared to their past profile or industry norms, large cash deposits made by government or PSU employees, persons who had undertaken high value purchases, persons who had used shell entities for layering of funds and where no responses were received.
“The information in respect of the cases and accounts identified has been made available in the e-filing window of the PAN holder at the portal https://incometaxindiaefiling.gov.in.
The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office. All identified persons are being informed through email and SMS for submitting response online,” the statement said. The taxpayer should ensure that Income Tax Return is compliant with amount deposited in bank accounts during the period of demonetisation and while computing income, the amounts so deposited are considered/ taken into account while paying taxes, the statement said.