IT Department seeks explanation from 5.56 lakh more taxpayers for demonetisation deposits

   Posted on 20th Jul 2017 19:05:25 in Tax Notice

The second phase of OCM (Operation Clean Money) has been started by the Income Tax Department. In this phase, they have identified 5.56 lakh depositors whose income profile do not match the amount of deposits made during demonetization.

In an official statement by Income Tax Department, it is said that profile of these persons was found inconsistent with cash deposits during the phase of demonetization. They have identified an additional 1.04 lakh individuals who skipped to disclose all bank accounts in the earlier OCM phase. The government has asked people who made heavy transactions in demonetization phase to e-verify all bank accounts.

Nearly, 17.92 lakh people were identified suspicious during the first phase of OCM who made large cash deposits in demonetization phase. Out of these, 9.72 lakh people submitted their response online as revealed by Income Tax Department.

The spokesperson said that people will be informed through SMS or email and also notified in the e-filing portal. Taxpayers can visit e-filing portal to know whether any notice is issued in your name or not.

In the statement, it is disclosed that taxpayers can submit their explanation online without visiting any income tax office branch. Department has issued notice to all such individuals who are identified. They all have to furnish details of deposits above 2 lakhs in ITR which will be later matched with IT Department information.

In the official statement, IT department has cleared that ITR should be compliant with amount deposited during the phase of demonetization and those deposit entries should reflect in the account while paying taxes. In short, every individual has to furnish truly and fully details of deposits made during demonetization.

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