IT Dept seeks explanation from 5.56 lakh more taxpayers for demonetisation deposits

The Income Tax Department has, in the second phase of Operation Clean Money (OCM), identified 5.56 lakh people whose deposits during the demonetisation window do not match their income profile.

"These are persons whose tax profiles were found to be inconsistent with the cash deposits made by them during the demonetisation period," the official statement said. "Another 1.04 lakh persons who did not disclose all bank accounts during e-verification in the first phase of OCM have also been identified. In the first phase, 17.92 lakh persons had been identified for e-verification of large cash deposits, of which 9.72 lakh people had submitted online response."

The statement added that all taxpayers so identified would be informed via email or SMS and that they can view the relevant information on the e-filing portal https://incometaxindiaefiling.gov.in.

"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 added.

The Department added the taxpayers would have to also provide details of deposits of more than Rs. 2 lakh in their Income Tax Returns, which would then be matched with the information with the Income Tax Department.

"The taxpayer should ensure that ITR 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 Department said. "Cash deposits made in the above period may thus be fully and truly disclosed in the ITR." #casansaar (Source - The Hindu)