Income Tax Department (ITD) launches Operation Clean Money

In another step towards cleaning black economy, govt. today has launched operation clean money campaign.

In the press release by CBDT, it is mentioned that e-verification of large cash deposits made during 9th November to 30th December 2016 would be scrutinized. Govt will use data analytics for comparing the money that has been deposited by you in old currency notes during the demonetization   drive with the information available in ITD databases.

This is one of the first step that govt has taken in acting against the people who had deposited large chunks of money in old currency notes. As per the press release, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile.

ITD has enabled e-verification of these transactions. The information in respect of these cases is available in the e-filing window of the PAN holder (after log in) at the portal 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.

Please see the screenshots below for your easy reference:

How to respond if cash transactions appear in your account?

Click on submit to respond. The taxpayer response is in two steps:

  1. In the 1st step the taxpayer needs to confirm that the bank account relates to the PAN of the taxpayer.
  2. Further details are required to be provided in the 2nd step only if the taxpayer confirms that the account relates to the taxpayer.

The taxpayer is provided with two options i.e. “The account relates to this PAN” and “The account does not relate to this PAN”. If the taxpayer selects the response option “The account relates to this PAN” the screen for capturing details will be displayed to the taxpayer. Please see screenshot below:

If the taxpayer selects the response option “The account relates to this PAN” the screen for capturing details will be displayed to the taxpayer. At this stage, the taxpayer will be able to modify the value of cash deposit (if it is different than the displayed value). The taxpayer will also be able to provide the explanation of transaction (source of cash deposit) digitally without visiting the Income tax office.

For more detail as to how to submit the detailed response, please refer to the govt. guide:

Alternatively, in case of any difficulty in submitting on line response, govt.  help desk at 1800 4250 0025 may be contacted.

If the taxpayer 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. On clicking the submit button, the success message along with Transaction ID is displayed on the Screen.

Email and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal.

If you are not registered on the income tax portal of govt., please follow our link to see how you can get yourself registered-

Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.

The response of taxpayer will be assessed against available information. In case explanation of source of cash is found justified, the verification will be closed without any need to visit Income Tax Office. The verification will also be closed if the cash deposit is declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY). The taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act as also other applicable laws.

Please note cash transaction data will only be shown in cases where it does not appear to be in line with the taxpayer profile. So, in case taxpayer deposited money exceeding Rs. 2,50,000 but as per the ITD database & data analytics, it is in line with the taxpayer’s profile then one need not worry. In such a case, no inquiry would be done.

Care to speak with an Expert? Our CAs know how to handle this and will address your doubts and worries. CLICK HERE FOR HELP.

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