NEW DELHI: Government today extended the window for assessees receiving SMS or e-mail queries from the income tax department on cash deposits post-demonetisation by 5 days to February 15.
"Time limit for filing of online response to cash deposit data extended! Now you can file your details by February 15, 2017, #Operation Clean Money," the I-T department said in a tweet.
On January 31, the tax department had launched 'Operation Clean Money' under which it had sent SMS and e-mails to 18 lakh assessees in the initial phase for suspicious cash deposits of Rs 5 lakh and above made during November 9-December 30, 2016.
These people had to reply to these queries by logging onto the e-filing portal of the I-T department within 10 days of receipt of communication.
Post demonetisation of 500 and 1,000 rupee notes on November 8, the government had asked holders of such notes to deposit them in bank accounts by December 30.
The department has since garnered a large amount of data on deposits made in banks. It has also segregated the data for deposits between Rs 2 lakh and Rs 80 lakh and Rs 80 lakh and above.
It has matched the cash deposit data with the profile of the assessee and in case of a mismatch, the department sent out SMS and e-mails.
The tax department said if the deposits are out of cash sales of business, the cash will have to be assigned to various categories -- cash received from identifiable persons with or without PAN; cash received from unidentifiable persons, cash out of earlier income or savings in which case closing cash balance as on March 31, 2016, will have to be provided.
"Data analytics will be used to select cases for verification, based on approved risk criteria," the I-T department said, adding that the assessee will have to provide additional information if his case is picked up for further verification.
The assessees will have the option to revise their response on the e-filing portal.
On what the assessee will have to show under 'cash out of earlier income or savings', the tax department said that in case of an individual having no business income, cash out of earlier income or savings means cash out of savings as on November 8, 2016. In the case of business, the cash in hand as on March 31, 2016, can be taken as cash out of earlier income or savings.
Post demonetisation of 500 and 1,000 rupee notes on November 8, the government had asked holders of such notes to deposit them in bank accounts by December 30.
The department has since garnered a large amount of data on deposits made in banks. It has also segregated the data for deposits between Rs 2 lakh and Rs 80 lakh and Rs 80 lakh and above.
It has matched the cash deposit data with the profile of the assessee and in a case of a mismatch, the department sent out SMS and e-mails.