Operation Clean Money Phase 2: IT Department identifies 5.5 lakh more people for cash deposit scrutiny

The Income Tax Department has launched second phase of Operation Clean Money (OCM), Ministry of Finance on Friday said. 

The I-T department has identified 5.56 lakh people whose deposits during the demonetisation period do not match with their income tax profiles, the ministry said in a statement.  

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The ministry said that I-T Department has identified another 1.04 lakh persons who failed to disclose all bank accounts during e-verification in the first phase of OCM. 

"In the first phase, 17.92 Lakh persons had been identified for e-verification of large cash deposits, of which 9.72 Lakh people had submitted online response," I-T Department said.

Moreover, the Ministry added that the department will inform the identified taxpayers through E-mail and SMS for submitting response online.

"The information in respect of the cases and accounts identified has been made available in the e-filing window of the PAN holder at the portal https://incometaxindiaefiling.gov.in. The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office," the department said.

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Post demonetisation, the IT Department had made a mandatory rule to disclose the details of cash deposited in the time period from November 9 to December 31, in the bank accounts aggregating to Rs 2 lakh or more while filing the Income Tax Return. 

"The taxpayer should ensure that ITR is compliant with amount deposited in bank accounts during the period of demonetisation and while computing income, the amounts so deposited are considered/taken into account while paying taxes. Cash deposits made in the above period may thus be fully and truly disclosed in the ITR," it said.

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Under 'Operation Clean Money' launched by the I-T department on January 31, the department has sent SMS and e-mails to 17.92 lakh people who have made suspicious deposits of Rs 5 lakh and above between November 10 and December 30.

The department initiated the second phase of the 'Operation Clean Money' on April 14, under which more than 60,000 persons, including 1,300 high risk persons, have been identified for investigation into claims of excessive cash sales during the demonetisation period.