Income Tax Department (ITD) has initiated Operation Clean Money.
Operation Clean Money
The initial phase of Operation Clean Money involves e-verification of large cash deposits made during 9th Day of November to the 30th Day of December 2016. Data analytics has been used for comparing the demonetisation data with information in ITD databases. 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. Deposits over five lakh rupees are under scrutiny. Any deposits made under the “Pradhan Mantri Garib Kalyan Yojna” will not fall under this operation. Any person making the shortlist would be given ten days to clarify the source of their income and if unable to do so the Income Tax Department would be issuing notices to them. A new helpline number (180042500025) has been issued to assist people in making the process easy.
Operation Clean Money | Procedure for 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. 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 available information. In case explanation of source of cash is found justified, the verification will be closed without any need to visit Income Tax Office. The verification will also be closed if the cash deposit is declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY).
- The taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act as also other applicable laws.