Is the tax department tracking my 500rs and 1000rs currency deposits?

With its demonetisation drive, the government has launched a massive clampdown on cash hoarders. The government is betting that removing old currency notes will reveal under-reported income and fill it’s coffers with taxes.

It’s a non-brainer that for this exercise to succeed every large deposit must be separately tracked and explained.

Currency Deposits of old 500rs and 1000rs are being tracked by the income tax department

Any deposits in a bank account in excess of Rs 2.5lakhs between 9th November 2016 and 30th December 2016 shall be tracked. [Read in detail here].

Some people are puzzled whether they should made several deposits of less than Rs 50,000 to escape this. But this work around seems futile in the days of electronic banking where banks can track total deposits made almost immediately. So if you have cash, in our opinion, it doesn’t matter how many times you go to the bank and how small your deposits are. You are likely to be questioned if your aggregate deposits exceed Rs 2.5lakhs during this period.

 

The income tax department has also added an option which links these deposits directly to your income tax login on www.incometaxindiaefiling.gov.in .

 

How to view currency notes deposit information on income tax department website

Here are step-by-step instructions on how to view this deposit information. Also one has to respond to this information online.

Step 1: Login to the income tax department website www.incometaxindiaefiling.gov.in. If you don’t have a login click on ‘Register’

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Step 2: Click on the top blue colored bar on ‘Compliance’ and go to the last option ‘Accounts with cash transaction’

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Step 3: Verify the details of bank account details related to you.

If you have not made any cash deposits yet – you are likely to see the following screen.

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Those who have deposited sums are likely to see this screen.

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Step 4: Submit response online and keep acknowledgement for record. Do note that in case of a wrong submission, you can revise it by logging on to the income tax department portal.

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Beware of hoax messaging

Several hoax messages are doing the rounds on whastapp and other medium. Do not believe everything. Before you take any step – its important to verify the veracity of the information received by you.

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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