The Income Tax department has asked taxpayers to verify online
the deposits they have made in their accounts post de-monetization and respond to queries of any mismatch. Such response is desired to be filed within
10 days of such intimation through mail. Such mail is being sent by the
department on both the E mail IDs in profile of the assessee on Income Tax
Portal.
The department is
using data analytics for comparison of deposits made after the November 8 decision to scrap high-value banknotes with
information in its database to identify taxpayers whose cash transactions do
not appear to be in line with the tax-paying profile.
With a view to avoiding undue harassment, it has now enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimizing its resources.
To help taxpayers, it has now brought out a user guide.
Online Verification of Cash Deposits during 9th November to 30th December 2016 Data analytics has been used for comparison of demonetization data with information in ITD databases to identify taxpayers wherein the cash transaction does not appear to be in line with the taxpayer’s profile.
With a view to avoiding undue harassment, it has now enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimizing its resources.
To help taxpayers, it has now brought out a user guide.
Online Verification of Cash Deposits during 9th November to 30th December 2016 Data analytics has been used for comparison of demonetization data with information in ITD databases to identify taxpayers wherein the cash transaction does not appear to be in line with the taxpayer’s profile.
Taxpayers who are not yet registered on the e-filing portal
(at https://incometaxindiaefiling.gov.in) should register by clicking on the
‘Register Yourself’ link. Registered taxpayers should verify and update their
email address and mobile number on the e-filing portal to receive electronic
communication.
The information relating to cash deposits will be displayed to
the PAN holder in the e-filing portal (after log in). The taxpayer can view the
information as under:
Step 1: Login to
e-filing portal at https://incometaxindiaefiling.gov.in.
·
Step 2: Click on “Cash Transactions 2016” link under “Compliance”
section
.·
Step 3: The details of transactions related to cash deposits during 9th
Nov to 30th Dec 2016 will be displayed.
Submission of response
The user is provided with two options
i.e. “The account relates to this PAN” and “The account does not relate to this
PAN”. If the user selects the response option “The Account does not relate to
this PAN” then message “Your feedback will be sent to the information source
for confirmation.” will be displayed. If the user selects the response option
“The account relates to this PAN” the screen for capturing details will be
displayed to the user. At this stage, the user will be able to modify the value
of cash deposit (if it is different than the displayed value). The user will
also be able to provide the explanation of transaction (source of cash
deposit). The various categories for providing the explanation of cash deposit
are:
·
Cash out
of earlier income or savings
·
Cash out of receipts exempt from tax
·
Cash withdrawn out of bank account
·
Cash received from identifiable persons (with
PAN)
·
Cash received from identifiable persons
(without PAN)
·
Cash received from un-identifiable persons
·
Cash Disclosed/To be disclosed under PMGKY
In case the taxpayer claims that cash
was received from other persons, the person wise details is required to be
submitted electronically in csv format as given by Income Tax Department in csv
template download.
The Particulars of details are as
follows:
Ø
PAN
Wise List of persons with transaction details
PAN of
person
|
Name of person
|
Nature of Transaction
|
Amount Received
|
Remarks
|
Ø Account
Wise List
Bank/Institution
|
IFS Code( in case of Bank account)
|
Account
Number
|
Amount
Withdrawn
|
Remarks
|
Ø
Person
Wise List for identifiable persons ( without PAN)
Name of person
|
Address of person
|
Pincode of person
|
Nature of transaction
|
Amount Received
|
Remarks
|
Ø
Transaction
Wise List from unidentifiable persons
Nature
of transaction
|
Amount Received
|
Remarks
|
The user is also required
to submit details of other bank accounts (other than the one displayed) in
which specified bank notes (SBN) has been deposited.
Special Care:
ü After downloading the template file.
The Assessee can fill in the information and save file without special
characters and without changing the file format with option available in save
as file as csv (comma Delimited) *.csv
format.
ü After creating the file in excel save
the file in *.csv file browse for the file so saved at choose file option of
the relevant info column and then select upload file.
ü After uploading the files for all the
options of sources of cash it will show in the last column the balance
unexplained.
ü Before unexplained cash balance there
is option in B-7
Cash Disclosed / to be disclosed in
PMGKY
Remarks
ü Submit or Back – Select Submit
Edit the response
ü After submitting successfully massage
is being sent to mail.
ü The assessee has the option to View and Edit the same any time after
that.
ü There is one option which nobody
should forget that if the bank account where cash has been deposited if not
shown now in the data base but account has been used for deposit of cash can be
reported now at the time of filing response.
Verification of case
Data analytics will be
used to select cases for verification based on approved risk criteria. If the
case is selected for verification, request for additional information and its
response will also be communicated electronically. The information on the
online portal is dynamic and will be updated on receipt of new information,
response and data analytics.
Compiled by: Suhasini Dang ( CA Finalist) at Sandeep Ahuja &
Co
