New Delhi, January 31, 2017

To verify cash deposits made during demonetisation period

The income-tax department has identified 1 crore taxpayers who have made deposits of over Rs 2 lakh in their bank account during the period of demonetisation between November 9 and December 30.

It will be sending verification queries to 18 lakh taxpayers on February 1 on their e-mails.

“In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile,” said Sushil Chandra, Chairman, Central Board of Direct Taxes.

 To ensure that taxpayers are not harassed, CBDT has also prepared a new software called Operation Clean Money for online verification.

 “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,” CBDT said, adding that taxpayers will have 10 days to respond.

[The Hindu Business Line]