Income Tax Department launches Operation Clean Money to seek Clarification from PAN holders on cash deposited during Demonetisation period
Demonetisation was a huge exercise involving almost every citizen of this country as most had old 500 or 1000 rupee note which he/ she would have exchanged, expended for specified purposes or deposited into bank.
One of the purpose of demonitisation was to bring the high denomination notes into banking system thereby ensuring unearthing of black money if the source of cash deposited into banking channel can not be justified by the depositor.
Intelligence wing was equipped with high end data analytical software which has given its result to Income Tax Department. Data analytics has been used for comparing the demonetisation data of old Rs 500 & Rs 1000 notes deposited in banks with information in ITD data bases for Income tax returns filed as well as AIR data reported by various agencies.
In First batch, around 18 Lakh persons have been identified in whose case, cash transactions do not appear to be in line with tax payer’s profile as far as his submitted Income source is concerned.
To make such persons answerable, Income Tax Department today has launched Operation Clean Money (स्वच्छ धन अभियान)
Dr.Hasmukh Adhia, Revenue Secretary & Shri Sushil Chandra, Chairman, CBDT made the announcement regarding the same at a Press Conference, in New Delhi
This can be construed as a very good , time saving & transparent step by Income tax Department to ensure self-compliance from the depositor regarding the source of cash deposited in his account. Following are the brief details of the scheme.
1) Initial phase of Operation Clean Money involves e-verification of large cash deposits made during 9th November 2016 to 30th December 2016.
2) Income Tax Department has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources.
3) Email and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal based on their bank data linked with PAN or possibly AADHAR also.
4) The Information in respect of these cases is being made available in the e-filing account of the Taxpayer on www.incometaxindiaefiling.gov.in.
5) The PAN holder can view the information using the link “Cash Transactions 2016” under compliance section of the e-filing portal.
6) The Taxpayer will have to submit online explanation without any need to visit Income Tax Office.
7) Taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the Income Tax Department.
8) Those who are not registered on the e filing portal should compulsorily register on same.
9) Registered taxpayers should verify and update their e mail address and mobile number on the e-filing portal to receive electronic communication.
10) Viewing information of cash deposited
The information relating to cash deposits will be displayed to the PAN holder in the e-filing portal (after log in).
The taxpayer can view the information as under:
Step 1: Login to e-filing portal at https://incometaxindiaefiling.gov.in.
Step 2: Click on “Cash Transactions 2016” link under “Compliance” section.
Step 3: The details of transactions related to cash deposits during 9th Nov to 30th Dec 2016 will be displayed.
11) A Person will have to submit following response for cash deposited during 9th November 2016 to 30th December 2016.
The user is provided with two options i.e. “The account relates to this PAN” and “The account does not relate to this PAN”. If the user selects the response option “The Account does not relate to this PAN” then message “Your feedback will be sent to the information source for confirmation.” will be displayed. If the user selects the response option “The account relates to this PAN” the screen for capturing details will be displayed to the user. At this stage, the user will be able to modify the value of cash deposit (if it is different than the displayed value). The user will also be able to provide the explanation of transaction (source of cash deposit).
The various categories for providing the explanation of cash deposit are:
Cash out of earlier income or savings
Cash out of receipts exempt from tax
Cash withdrawn out of bank account
Cash received from identifiable persons (with PAN)
Cash received from identifiable persons (without PAN)
Cash received from un-identifiable persons
Cash Disclosed/To be disclosed under PMGKY
If cash is from more than one category (or out of cash in hand), the source of cash may be assigned under various categories keeping in view the aspects and sequence mentioned in the User Guide. In case the taxpayer claims that cash was received from other persons, the person wise details is required to be submitted electronically. The user is also required to submit details of other bank accounts (other than the one displayed) in which specified bank notes (SBN) has been deposited.
12) The response of taxpayer will be assessed against available information. In case the explanation of source of cash is found justified, the verification process will be closed without any need to visit Income tax office.
13) 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. The information on the online portal is dynamic and will be updated on receipt of new information, response and data analytics.
14) A detailed user guide is available for download at
15) A quick reference guide is available for download at
16) In case of any difficulty in submitting online response, taxpayer can contact help desk number 1800-4250-0025.
Thus this Operation Clean Money (स्वच्छ धन अभियान) can be termed as a path breaking initiative of Income Tax Department under digital India platform pushed up by government.