Dear Professional Colleague,
In the light of demonetisation, Income Tax Department (ITD) initiated Operation Clean Money (OCM) or Swachh Dhan Abhiyan on 31st January 2017 with the objective, to create a tax compliant society through a fair, transparent and non-intrusive tax administration. In this regard, Operation Clean Money Portal (https://www.cleanmoney.gov.
Under OCM, ITD leveraged technology and data analytics for e-verification of cash deposits made during the demonetisation period i.e. 9th November, 2016 to 30th December, 2016. As part of initial phase of OCM, 17.92 lakh persons were identified in whose case; cash deposit did not appear to be in line with the taxpayer’s profile. In the second phase, additional 5.56 lakh persons have been identified for e-verification. These taxpayers can submit an online response using the link “Cash Transactions 2016” made available under “Compliance” section in the e-filing window of the PAN holder (after log in) at https://incometaxindiaefiling.
All identified persons were informed through Email and SMS for submitting response online. Though the stipulated time to submit the response was 10 days from the time the intimation was received but the same can still be given online in the e-filing portal. Accordingly, members are advised that in case any of their clients has not yet e-verified cash deposits made during the demonetisation period, they may still do so in order to avoid any enforcement actions from ITD. In order to assist taxpayers, a detailed user guide, quick reference guide and FAQs on cash transactions is available under the ‘Resources’ section of Clean Money Portal.
Further, details of cash deposited in bank accounts aggregating to 2 lakh or more is required to be given in the Income Tax Return (ITR). This information will be matched with the information in possession of the Income tax Department. The taxpayer should ensure that ITR is compliant with amount deposited in bank accounts during the period of demonetization and while computing income, the amounts so deposited are considered/ taken into account while paying taxes.
We, at ICAI, are thereby pledging our support for the mission. In this regard, we urge you to actively participate in Operation Clean Money by extending your “Support (Please click here).
For more information, visit www.cleanmoney.gov.in or for any queries, suggestions, feedback, reach out at firstname.lastname@example.org.
Members are also requested to give suggestions on the ways which may be practically implemented to incentivise the assessees to pay their due taxes at the link: https://goo.gl/forms/
Chairman, Direct Taxes Committee
The Institute of Chartered Accountants of India