Reply date for I-T queries on deposits during demonetisation extended till Feb. 15

The Income Tax Department has extended the date for replying to the queries on cash deposits during the demonetisation period till February 15.

On December 31 last year, the tax department had launched 'Operation Clean Money' under which it had sent out SMS and e-mails to 18 lakh assessees in the initial phase for suspicious cash deposits of 5 lakh rupees and above made during the demonetisation period. These people had to reply to these queries by logging onto the e-filing portal within 10 days. This has now been extended till Wednesday, i.e. till Feburary 15.

In an frequently asked questions(FAQ) to clear the doubts over replying to SMS or e-mail queries received with regard to suspicious deposits, the tax department said assessees should give explanations of the source of cash.

If the cash deposited is from multiple sources or arises from cash in hand as on November 8, the assessee while replying on the e-filing portal will have to give segregated details like cash withdrawn from bank, cash received from identifiable persons with or without PAN, cash received from unidentifiable persons and cash out of earlier income or savings.

The assessee can also report how much he has deposited or will deposit under the Pradhan Mantri Garib Kalyan Yojana scheme, in which it can pay 50 per cent tax and penalty and come clean.