Operation Clean: 527,000 taxpayers explain cash deposits after note ban

Dept extends deadline to Feb 15, asks all 1.8 million to furnish replies or face action

The income tax department has received responses from more than 5,27,000 taxpayers by February 12 about the source of their money deposited in old currencies during November 8 and December 30, 2016. The Department had identified 1.8 million taxpayers in its Operation Clean through data mining and asked them to submit responses about the source of their deposits.  

While the department on Monday claimed that it has got an overwhelming response on 7,41,000 accounts, it also extended the deadline for submission of responses to February 15 from February 10. 

In a statement, it warned those not submitting their responses within this extended period that enforcement actions under the Income-tax Act and other applicable laws would be taken against them.

Of 1.8 million tax assessees, the exercise has identified around 4,84,000 taxpayers not yet registered with the e-filing portal. 

SMS have been sent on the mobile number of these unregistered persons. 

"Income Tax Department is keeping a vigil on the PAN holders who have still not registered on the e-filing portal or who have not yet submitted their online response. Such taxpayers are advised to register themselves at the e-filing portal," a statement by the department said. 

The portal is-- https://incometaxindiaefiling.gov.in.

The Central Board of Direct Taxes said in a statement that out of the 7,41,000 accounts confirmed by the 5,27,000  taxpayers, the cash deposit amount has been confirmed in more than 99.5 per cent accounts. 

"The Department is encouraged to note that taxpayers have increased the cash deposit amount in nearly 90,000 accounts and provided details of additional 25,000 bank accounts in which cash was deposited," it said. 

The explanation of cash deposit submitted by the taxpayer is being analysed in the context of nature of business and business profile in the earlier returns of the taxpayer, it said. 

Finance minister Arun Jaitley had said in his Budget speech that a preliminary analysis of data received in respect of deposits made by people in old currency showed that during November eight to December 30 2016, deposits between Rs 2 lakh and Rs 80 lakh were made in about 11.09 million accounts with an average deposit size of Rs 5.03 lakh. Deposits of more than 80 lakh were made in 1,48,000 accounts with average deposit size of Rs 3.31 crore.

Those who have deposited up to Rs 2.5 lakh are not part of 1.8 million identified assessees. Also, no further questions would be asked for those who have opted for pradhan mantri garib kalyan yojana or income disclosure scheme-2 as it is called in popular parlance.