Demonetisation mishap: 1.8 mn people affected as I-T Dept mixes up data

I-T department detected over 10 mn accounts where cash deposits exceeded Rs 2 lakh after note ban

Did you receive a false tax notice for depositing more than Rs 2 lakh in banks post-November 8? This is because an error occurred in 1.8 million communications sent by the Income Tax (I-T) department for cash deposits made post demonetisation.

Labelled 'Operation Clean Money', the I-T department has uploaded the first set of data on its electronic filing portal which received several responses from taxpayers through the e-filling window. 

If an individual’s name is mentioned under the portal’s ‘Cash transactions 2016’ category, the concerned person will have to submit an online clarification within 10 days on http://incometaxindiaefiling.gov.in providing details on how they acquired the cash which they apparently deposited post-November 8. 

However, if the I-T department is not satisfied with the response, then action will be taken against them. A businessman who received an I-T notice, on condition of anonymity said, “I deposited only Rs 2.3 lakh but received a notice for depositing Rs 6.9 lakh,” reported Ahmedabad Mirror. 

Another businessman received a notice for depositing Rs 3 lakh when he claims to have deposited a smaller amount, that too, on November 7 before demonetisation was announced, the report added. 

After the launch of Operation Clean Money on February 1, the I-T Department detected over 10 million accounts where cash deposits exceeded Rs 2 lakh after the demonetisation move. Of the suspected accounts, notices were sent to 1.8 million people whose deposits did not match with their respective profiles. 

While the first phase focuses on the compilation of cash deposits included data analysis post-demonetisation, the upcoming phases will include financial transactions like sale of gold by jewellers that will be matched with their respective tax returns reported The Financial Express. 

After demonetisation, when old when old notes of Rs 500 and Rs 1000 were not considered legal tender, individuals were asked to submit these notes until December 30.