Operation Clean Money by Income Tax

New Delhi February 23: After Demonetisation Income tax department came with a process of "Operation Clean Money" in order to verify the accuracy deposits of the Taxpayers.

"Operation Clean Money" will start from next month, the Central Board of Direct Tax (CBDT) has directed the I-T department to refrain from issuing show cause notices during verification under the operation.

Coming into matter, The Income Tax Department (ITD) had initiated "Operation Clean Money" on 31st January 2017 for the e-verification of large cash deposits made during the period from 9th November to 30th December 2016. Under this operation, email and SMS were sent to over 18 lakh taxpayers to submit their response on the e-filing portal.

CBDT had, on February 13, confirmed that Operation Clean has received an overwhelming response as over 5.27 lakh taxpayers have confirmed about 7.41 lakh accounts by responding on the e-filing portal. Out of these accounts, the cash deposit amount has been confirmed by more than 99.5 percent accounts.

The Ministry of Finance has also confirmed that about 4.84 lakh taxpayers haven’t confirmed their accounts but the IT department is keeping a close eye on them and SMS has been sent to their mobile numbers. In order to allow more people to file the response, the Ministry of Finance had also extended the last date of submission up to 15th February 2017.

The department has also noted an increase in cash deposits in nearly 90,000 deposits and has provided details of another 25,000 accounts where cash has been deposited. The department is now analyzing the nature of business and business profile in the earlier returns of the taxpayer.