CBDT’s Operation Clean Money; Instructions for verification of Cash Deposits by AO

CBDT gets good response to “Operation Clean Money” (e-verification of 18 Lakh persons identified for disproportionate cash deposits/ transactions post demonetization); Standard Operating Procedure/ Instructions issued to Assessing Officers for preliminary verification of Cash Transactions involving risk of tax evasion

Income Tax Department has issued Instructions/ SOPs for preliminary verification by the Assessing Officers of transactions of persons identified under “Operation Clean Money” for disproportionate cash deposits/ transactions post demonetization (i.e. during 9 Nov. to 30 Dec. 2016) involving risk of tax evasion.

It may be noted that Income Tax Deptt. has already clarified that no scrutiny shall be conducted, if proper justification is submitted or the cash deposit is declared under PMGKY. Also, the last date for the submission of online response/ e-verification was extended up to 15 Feb. 2017.

In the first batch, around 18 lakh persons have been identified by Income Tax Deptt. in whose case, cash transactions didn’t appear to be in line with the tax payer’s profile. ITD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources. The information in respect of these cases has been made available in the e-filing portal of the PAN holder, who can view the information using the link “Cash Transactions 2016” under “Compliance” section. The taxpayer can submit online explanation without any need to visit Income Tax office.

A detailed user guide and quick reference guide is available on the portal to assist the taxpayer in submitting online response. In case of any difficulty in submitting on line response, help desk at 1800 4250 0025 may be contacted.

CBDT’s SOP/ Instructions No. 3 dt. 21 Feb. 2017 for AO verifying Cash Transactions

CBDT’s FAQs on e-verification of Cash Transactions post Demonetization

CBDT’s User Guide/ Manual for Online/ e-Verification of Casg Transactions

CBDT Press Release dt. 13 Feb. 2017 Last Date Extended

CBDT Press Release dt. 31 Jan. 2017 Identification of 18 lac persons

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