economy, india

IT department asks taxpayers to verify online deposits made post demonetisation

Income Tax department on Thursday asked taxpayers to verify online the deposits they have made in their accounts post demonetisation and respond to queries of any mismatch.

 The department is using data analytics for comparison of deposits made after the November 8 decision to scrap high-value banknotes with information in its database to identify taxpayers whose cash transactions do not appear to be in line with the tax-paying profile.

 With a view to avoiding undue harassment , it has now enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources.

 The information on cash deposits is now available for online verification in the e-filing window of the PAN holder (after log in) at https://incometaxindiaefiling.gov.in.

The cash deposited in an account can be verified using the link Cash Transactions 2016 under ‘compliance’ section of the website. The details of transactions related to cash deposits made during 9th November to 30th December 2016 will be displayed.

The taxpayer needs to confirm that the bank account relates to his PAN. In case the account does not relate to the PAN, a suitable option can be selected and information will go to the tax department.

If the account belongs to the PAN holder but the value of deposit is incorrect, a correct entry can be submitted online.

The website also provides for the taxpayer to explain the source of cash deposit digitally without visiting the income tax office.

 The user guide says the taxpayer is required to give details if cash is claimed to be withdrawn from the bank account. Details should also be mentioned if the cash is received from other persons in the form of cash sales, loan, gift or donations.

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