- After preliminary data mining, the IT department requested for explanations from depositors whose cash deposits were inconsistent with their income tax profile.
- 18 lakh depositors have time till March 31 to furnish the details of their cash deposits.
- The department has hired outside agencies for specialised data mining.
- Specialised data mining will further elongate the list.
After the Income Tax Department had sought clarifications from 18 lakh people for depositing cash which is inconsistent with their income profile available with the department after demonetisation, more than 2 lakh people logged into the department’s official website to e-verify their accounts. About 60,000 people responded, and some of the respondents agreed to pay their tax dues reported the Economic Times.
The report quoted the chairman of Central Board of Direct Taxes, Sushil Chandra who confirmed that as of now, no official notice had been sent to any of these people. He further stated that the IT department requested for e-verification of accounts along with an explanation for depositing the large sum.
The depositors have been asked to furnish the source of the cash deposited before March 31, after which the ones who fails to provide the same will receive formal notices from the IT department.
The department has also created structured response options to clarify whether the deposit has been made after withdrawing the money from a bank account or the cash is part of some exempted income or the account holder is a farmer, or it is a gift given by someone who furnished their PAN number. There is also an ‘other’ option, and the depositors can also opt for the Pradhan Mantri Garib Kalyan Yojana (PMGKY) before the deadline of March 31.
The chairman also disclosed that further data mining would elongate the list of people who will have to explain the source of the deposited cash. The department is also hiring outside agencies for advanced and specialised data mining. He also confirmed that preliminary data mining had been done after which 18 lakh depositors have received the request.
The Income Tax Department will also go after suspicious transactions reports (STRs) and also track people who opened bank accounts after demonetisation.
Last Updated 31, Mar 2018, 6:52 PM