I-T Dept's 'Operation Clean Money' gets 5.27 lakh responses

The income tax department's 'Operation Clean Money' initiative has seen an overwhelming response and till 12 February more than 5.27 lakh depositors have submitted their response, says a government release.

Out of the 7.41 lakh accounts confirmed by the 5.27 lakh depositors, cash deposit amount has been confirmed in more than 99.5 per cent accounts. 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, according to the I-T Department.

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, the release stated.

The exercise has identified around 4.84 lakh taxpayers not yet registered with the e-filing portal. SMSes have been sent on the mobile number of these unregistered persons. The Income Tax Department said it 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. It has advised such taxpayers to register themselves at the e-filing portal https://incometaxindiaefiling.gov.in  and submit online explanation.

In order to facilitate online responses, the last date for their submission has been extended up to 15th February, 2017 and a detailed Frequently Asked Question (FAQs) has also been issued to assist the taxpayers in submitting their response. The taxpayers should submit their response within this further extended period with a view to avoid enforcement actions under the Income-tax Act and other applicable laws.

The Income Tax department has stuck an e-notice on online income tax accounts of taxpayers filing online returns making it mandatory to report more than Rs5 lakh income deposited in demonetisede currency.

Some 1.8 million such notices have been issued so far. These notices have been pasted under the 'Cash transactions 2016' that flashes when one signs into the account with the help of login ID (which is the PAN0.

Some 60,000 out of 1.8 million citizens have already responded online. If their explanation washes with the department, they won't be bothered further, but if it doesn't they may get a formal notice post 31 March 2017.

The idea is to warn tax dodgers that they are on the radar of the department and that its claim of having built a formidable goldmine of information through banking and IT software is no empty boast.

It is also intended to nudge tax evaders to participate in the ongoing Pradhan Mantri Garib Kalyan Yojana (PMGKY) under which those who have deposited their ill-gotten demonetised notes can get away by paying a 50 per cent tax and parking 25 per cent of their deposits in a four-year non-interest earning deposit account.