Op Clean Money: 7.3 Lakh Explain Cash Deposits Made During Demonetisation
New Delhi: About 40% of people who were told to explain their cash deposit during the demonetisation period have done it by the February15 deadline set by the income-tax department.
“7.3 lakh people have logged online to offer their explanation,” a senior government official told ET. The I-T department had asked 18 lakh people to explain their cash deposits.
“The department will now decide the next course of action for the 10.7 lakh people who have not responded,” he said.
The department had last week extended the deadline for providing explanation for deposits and also issued a set of clarifications through FAQs to address all queries.
It had, under 'Operation Clean Money' initiative, sent SMS and emails to 18 lakh people with deposits of over ₹ 5 lakh during the 50-day window that was seen to be inconsistent with their income. The department has roped in outside experts to work on the data to catch more suspect transactions.
It is expected to come up with a new list of people for enquiry after deeper analysis of the data for the demonetisation period. I-T sleuths are now examining the responses offered by 7.3 lakh assesses. The department expects many of them to avail the Pradhan Mantri Garib Kalyan Yojana, 2016, by March 31, paying 50% tax and putting 25% of the amount in four-year interest free deposit. Tax experts ET spoke to say the I-T department may have to send formal income tax notices to the 10.7 lakh people who have not offered any explanation for their deposit as SMS and email correspondences do not have any legal backing.
This is likely only after March 31 when the Pradhan Mantri Garib Kalyan Yojana ends, as there is a chance some of these people declare these deposits under the scheme.
KNOCK, KNOCK Tax experts say I-T dept may have to send formal notices to10.7 lakh people who haven’t offered any explanation for their deposits