The income tax department receives information of high value transaction from banks and other financial institutions. These are received via Annual Information Report or AIR.
These high value transactions include –
Cash deposits of Rs 10lakhs or more in a savings bank account
Sale/purchase of immovable property like a house valued at Rs 30lakhs or more
And other similar transaction reported in AIR
- Many of these transactions that have come to the notice of the department do not have PAN linked to it.
- The department has information of 90lakh such transactions between 2009-10 to 2016-17.
- The Income Tax Department has with the help of in-house computer techniques, grouped such non-PAN transactions and identified 7 lakh high-risk clusters having around 14 lakh non-PAN transactions which are being scrutinized by the Income Tax Department closely.
The Department will be issuing letters to people with such transactions. They will be requested to provide their PAN number against these transactions.
For the convenience of the parties who receive these letters, response can be submitted electronically on the e-filing portal.
The parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them, can link their transaction with their PAN easily.
They will also be able to give a response to this letter electronically by choosing the option of either owning up the transaction or denying the transaction as their own. The responses received from such parties online will be examined by the Department.
The department will initiate further necessary action in those cases where no replies are received.
The department has requested taxpayers to cooperate in the matter. They may use the departmental helpline to ask questions. The department prefers calls to the helplines instead of making direct contact with any officials of the income tax department.
The income tax department has also advised taxpayers not to seek help of unscrupulous elements who claim to offer help in complying with such letters.
As per release of the department dated 21st July 2016.