The Income Tax department has identified 18 lakh people who have made ‘suspicious’ cash deposits post demonetisation, including those having deposited over Rs5 lakh, and will send emails and SMSes seeking explanation about their source of funds.
These people will have to reply within 10 days to avoid any notice from the tax department or further enforcement action.
The department today launched ‘Operation Clean Money’ project under which CBDT, with data analysis and profiling of assessees, will send e-communications to people whose cash deposits post November 8 note ban do not match their income.
“Operation Clean Money/Swachh Dhan Abhiyan is a programming software which will be used to get answers on all the deposits made and only after preliminary answers from the people, if need be, we would take legal action against those people,” Revenue Secretary Hasmukh Adhia said.
Adhia also said Operation Clean Money will ensure there is no physical contact between the assessee and the tax department officials as questions will be asked online.
“People have been fearing there will be Inspector Raj as tax department will have data about all the deposits. But, the new programing software will enable e-verification of all bank deposits during the period of demonetisation,” he said.
Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said 10 days’ time would be given to people to reply to the e-communication and replies can be filed by logging on to the e-filing portal of the Income Tax department.
“In the initial phase, we are putting data of those persons who have deposited Rs5 lakh or more and deposits between Rs3 lakh and Rs5 lakh of suspicious nature and who have poor tax compliance after November 8,” Chandra said.
Initially, this will cover 18 lakh tax payers whose data will be uploaded on e-filing portal. These people while filing reply have to explain to tax department the sources of deposit.