Income Tax Department (ITD)
has initiated Operation Clean Money, today. Initial phase of the
operation involves e-verification of large cash deposits made during 9th
November to 30th December 2016. Data analytics has been used for
comparing the demonetisation data with information in ITD databases. In
the first batch, around 18 lakh persons have been identified in whose
case, cash transactions do not appear to be in line with the tax payer’s
ITD has enabled online verification of these transactions to reduce
compliance cost for the taxpayers while optimising its resources. The
information in respect of these cases is being made available in the
e-filing window of the PAN holder (after log in) 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.
Email and SMS will also be sent to the taxpayers for submitting online
response on the e-filing portal. Taxpayers who are not yet registered on
the e-filing portal (at https://incometaxindiaefiling.gov.in) should
register by clicking on the ‘Register Yourself’ link. Registered
taxpayers should verify and update their email address and mobile number
on the e-filing portal to receive electronic communication.
A detailed user guide and quick reference guide is available on the
portal to assist the taxpayer in submitting online response. In case of
any difficulty in submitting on line response, help desk at 1800 4250
0025 may be contacted.
Data analytics will be used to select cases for verification, based on
approved risk criteria. If the case is selected for verification,
request for additional information and its response will also be
communicated electronically. The information on the online portal will
be dynamic getting updated on receipt of new information, response and
The response of taxpayer will be assessed against available information.
In case explanation of 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 Pradhan Mantri Garib Kalyan Yojna (PMGKY).
The taxpayers covered in this phase should submit their response on the
portal within 10 days in order to avoid any notice from the ITD and
enforcement actions under the Income-tax Act as also other applicable