Bank/Financial Account(s) with substantial Cash Transactions- Quick Reference Guide for Online Verification of Cash Deposits during 9th November to 30th December 2016
Data analytics has been used for comparison of demonetisation data with information in ITD databases to identify taxpayers wherein the cash transaction does not appear to be in line with the taxpayer’s profile. Taxpayers who are not yet registered on the e-filing portal (at https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link. Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.
As part of its data matching exercise, Income Tax Department has identified bank accounts which have large value cash transactions. The information relating to cash deposits will be displayed to the PAN holder in the e-filing portal (after log in). The details of bank account are visible under “Compliance” section of the e-filing portal of the related persons. PAN holders can submit the on-line response as under:
Step 1: Login to e-filing portal at https://incometaxindiaefiling.gov.in. If you are not registered with the e-filing portal, use the ‘Register Yourself’ link to register.
Step 2: Click on “Accounts with Cash Transactions” link under “Compliance” section and you will be directed to the “Bank/Financial Account(s) with substantial Cash Transactions” page.
Step 3: View the details of the bank account related to you
Step 4: Submit online response and keep acknowledgement for record.
In case you make a mistake in submission of response, you may further revise it by login to e-filing portal.
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.
Verification of case
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.