With the use of Data analytics, the Income Tax Department (ITD) has compared the data post demonetization with the information available in ITD databases. And identified taxpayers whose cash transactions do not appear to be in line with their profiles. Taxpayers are required to verify transactions identified by ITD through their e-filing account.
How to view information relating to cash transactions?
The information relating to cash deposits will be displayed in the e-filing account of a PAN holder. So first register on the e-filing portal, to view cash transaction-related information. A taxpayer can view the information as follows:
- Visit Income Tax Portal
Login to e-filing portal using your credentials.
- You will find the cash transactions on the Dashboard.
Alternatively, you can navigate to Compliance > Cash Transactions 2016
- You will be able to see the details of cash transactions
Related to the cash deposits from 9th November 2016 to 31st December 2016.
How to submit a response?
Taxpayers need to verify the cash transactions online and submit the response through their e-filing account.
The taxpayer is provided with two options:
- The account relates to this PAN
- The account does not relate to this PAN
Select the response as per your case. In case the first option is selected then the taxpayer is required to provide the details including the source of cash deposits. Various categories for providing the explanation of cash deposits are:
- Cash out of earlier income or savings
- If Cash is out of receipt exempt from tax
- Cash is withdrawn out of bank account
- Cash received from identifiable persons (with PAN)
- Receipt of cash from identifiable persons (without PAN)
- Cash received from un-identifiable persons
- Cash disclosed/to be disclosed in Pradhan Mantri Garib Kalyan Yojana (PMGKY)
How to view submitted response?
You can view your submitted responses by clicking on the View button against the respective Bank account under ‘Cash Transactions 2016’
You can click on Transaction No / Download PDF to view or download your response.
IT Department uses Data analytics to select the cases for further verification. A taxpayer will receive an e-mail concerning the additional information required. A taxpayer can submit the response to it online as well.
A link ‘Additional Information Request Pending’ will appear on top of the list of bank accounts as shown below.
Once the response is submitted, the link will be updated as ‘Additional Information Request’
You can select the response ‘The Account does not relate to this PAN’and click on submit. IT Department will take it into consideration and will verify the same.
Even if the account belongs to your spouse or parents, you need to select the response ‘The Account does not relate to this PAN’ and submit. You only need to provide a response if an account belongs to your PAN.
In the case of cash receipts from your business/profession, you need to report them as ‘Cash Sales’ under ‘Nature of Transaction’.
You will receive an e-mail from the IT Department if your case is selected for verification. And the request for additional information will be displayed on your e-filing account on the portal.
Yes, you can re-submit your response with corrections/revisions.
No. IT Department will use Data analytics to select cases for verification, based on approved risk criteria.