New Delhi, July 14: The Income Tax department in the second phase of Operation Clean Money (OCM) has identified over 5.56 lakh individuals for investigation into claims of excessive cash sales during the demonetization period. Another 1.04 lakh persons who did not disclose all bank accounts during e-verification in the first phase of OCM have also been identified.
"The information in respect of the cases and accounts identified has been made available in the e-filing window of the PAN holder at the portal https://incometaxindiaefiling.gov.in. The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office," IT department said.
The First Phase of Operation Clean Money involved e-verification of cash deposits made in the banks. The entire phase was conducted online, wherein 17.92 lakh persons, who entered into cash transactions that did not appear to be in line with their tax profile, were identified and requested for on-line responses on such transactions. 9.46 Lakh persons responded on pre-defined parameters of sources of the cash deposits.
Interestingly, nearly 18 lakh persons who have been served notice, appear to have done cash transactions that do not appear to be in line with their tax profile. Around half, that number responded to the notices and the tax department has decided to close verification in cases where explanation about the source of cash was found to be sound.
In cases where the cash deposit has been declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY), the verifications would also be closed and those who have not responded will be punished.
The Income Tax Department (ITD) launched Operation Clean Money (OCM) on 31st January 2017 to leverage technology for e-verification of cash deposits made during the demonetization period i.e. 9th November to 30th December 2016.