I-T Notice for Cash Transactions: View & Response

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By Hiral Vakil on March 7, 2019

With the use of Data analytics, the Income Tax Department (ITD) has compared the data post demonetisation 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:

  • Step 1: Login to e-filing portal
  • Step 2: You will find the cash transactions on the Dashboard. Alternatively, you can navigate to Compliance > Cash Transactions 2016
Income Tax - Refunds & Notices -View Cash Transactions
  • Step 3: You will be able to see the details of cash transactions related to the cash deposits from 9th November 2016 to 31st December 2016.
Income Tax - Refunds & Notices -Information from Bank

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:

  1. The account relates to this PAN
  2. The account does not relate to this PAN
Income Tax - Refunds & Notices -Does not relate to the 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  • Cash is withdrawn out of bank account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’

Income Tax - Refunds & Notices -Submitted response

You can click on Transaction No / Download PDF to view or download your response.

Income Tax - Refunds & Notices - Submitted response

Further Verification

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.

Income Tax - Refunds & Notices -Additional pending information

Once the response is submitted, the link will be updated as ‘Additional Information Request’

Income Tax - Refunds & Notices -Additional submitted information

FAQs:

1. What should I do if the cash transactions do not belong to me?

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.

2. What should I do if the account displayed belong to my spouse/parents?

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.

3. How do I show my income received from tuition fees?

In the case of cash receipts from your business/profession, you need to report them as ‘Cash Sales’ under ‘Nature of Transaction’.

4. How will I know whether additional information is required or not?

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.

5. Can I revise the response which I have already submitted?

Yes, you can re-submit your response with corrections/revisions.

6. Whether all cases will be selected for verification?

No. IT Department will use Data analytics to select cases for verification, based on approved risk criteria.