CA Haresh Kataria
The online verification of cash deposits during demonetization has been enabled on the e-filing portal (for taxpayers) which will be synchronized with the internal verification portal of Income Tax Department (ITD).
Data analytics will be used to select cases for verification, based on approved risk criteria. If the case is selected for verification, request for additional information and its response will also be communicated electronically.
It may be noted that the information on the online portal will be dynamic getting updated on receipt of new information, response and data analytics.
The response of taxpayer will be assessed against the available information. In case explanation of source of cash is found justified, the verification will be closed without any need to visit the Income Tax Office. The verification will also be closed if cash deposit is declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY).
The Income Tax Department has published a User Guide for assisting the tax payer in submitting online response for transactions related to cash deposits during the demonetization period.
A brief summary of the User Guide is as under :
The User Guide states that Cash transaction data is only shown in cases where it does not appear to be in line with the taxpayer profile.
The information relating to cash deposits is displayed in the PAN holders account in the e-filing portal (after log in) under the “Compliance” section under the title “Cash Transactions 2016”.
The information of cash deposits is displayed as under
A.1 Bank / Institution
A.2 Branch / IFSC Code
A.3 Account Number
A.4 Cash Deposit in the account between 9th Nov2016 and
30th Dec 2016 (as reported)
A.5 Cash Deposit in the account between 9th Nov2016 and
30th Dec 2016 (as confirmed)
Submission of response
Confirmation of account
Explanation of cash deposit
Various categories for providing explanation are :
B.1 Cash out of income or savings- Amount + Remarks
B.2 Cash out of receipts exempt from tax-Amount + Remarks
B.3 Cash withdrawn out of bank account-Account wise list
B.4 Cash received from identifiable persons (with PAN)-PAN wise list
B.5 Cash received from identifiable persons (without PAN)-Person wise list
B.6 Cash received from unidentifiable persons-Nature of transaction wise list
B.7 Cash Disclosed/to be disclosed under PMGKY-Amount + Remarks
B.8 Balance (A.5-B.1, B.2, B.3,B.4,B.5)-Computed
Important aspects regarding submission of response
1. If the cash deposit under A.4 is not correct please mention the correct amount under A.5.
The Income Tax Department (ITD) intends to refer such cases to the information source for confirmation.
2. The sum of all sources of cash deposits (B.1 to B.7) should match with the confirmed cash deposit amount (A.5) such that the balance (B.8) is computed as 0.
3. Cash received from other persons
If cash is received from other persons (on account of cash sales, loan, gift, donation etc.), it should be mentioned under B.4, B.5 or B.6 as the case may be. The nature of cash transaction can be mentioned while providing the details.
4. If cash is claimed to be from more than one category (or out of cash in hand), the source of cash may be assigned under various categories in the following sequence (Adopting other sequence may result in case being selected based on risk criteria).
a) Cash withdrawn out of bank account (B.3
b) Cash received from identifiable persons with PAN (B.4)
c) Cash received from identifiable persons without PAN(B.5)
d) Cash received from unidentifiable persons without PAN (B.6)
e) Cash out of receipts exempt from tax (B.2)
f) Cash out of income or savings (B.1)
g) Cash Disclosed/to be disclosed under PMGKY (B.7)
6. If cash deposited is claimed to be, out of the receipts exempt from tax (B.2) or out of earlier income or savings (B.1), is not in line with the taxpayer profile or other information available, he case may be selected for verification based on risk criteria.
7. The user guide requires the taxpayer to suo moto submit the details of other bank accounts (other than the one displayed) in which specified bank notes (SBN) has been deposited and provide the explanation of the said deposits
Uploading lists using CSV
A facility has been provided to enable upload of CSV ( Comma Separated Values) files in following categories
B.3 Cash withdrawn out of bank account
B.4 Cash received from identifiable persons (with PAN)
B.5 Cash received from identifiable persons (without PAN)
B.6 Cash received from unidentifiable persons
The taxpayer has to download the respective template and upload the same after entering the data required as per the template.
Data format for Cash withdrawn out of bank account (B.3)
Account wise list
|Bank/Institution||IFSC Code||Account Number||Amount Withdrawn||Remarks|
Data format for Cash received from identifiable person with PAN (B.4)
Person wise list
|PAN of person||Name of person||Nature of transaction||Amount received||Remarks|
Data format for Cash received from identifiable person without PAN (B.5)
Person wise list
|Name of person||Address of person||Pin Code||Nature of transaction||Amount received||Remarks|
Data format for Cash received from un-identifiable person without PAN (B.6)
Nature of Transaction wise list
|Nature of transaction||Amount received||Remarks|
In the CSV Template the “Nature of Transaction” should be entered as per the codes mentioned below :
|Drop down||Code to be specified in CSV (case sensitive)|
|Loan received in Cash||RL|
|Loan repayment in Cash||RR|
|Gift received in Cash||RG|
|Donation received in Cash||RD|
|Other Cash Receipt||