Huge deposits of Rs. 500 and Rs. 1000 notes following Prime Minister Narendra Modi's demonetisation move have come under the scanner, with the use of new government software.
Under the initiative, 'Operation Clean Money', the Income Tax department (I-T) has already identified at least 18 lakh people who have made unexpectedly hefty cash deposits, mostly over Rs. 5 lakh, between 8 November and 30 December.
They have been sent emails and phone text messages that seek explanation about the source of funds and a response within 10 days.
Sushil Chandra, Chairman, Central Board of Direct Taxes (CBDT) told ANI, "More messages will be sent soon. Chandra said that during the course of investigation, department has identified that more than 4.17 lakh crore suspicious deposits were made from 18 lakh assesses during November 9 to 31st of December. The 18 lakh account holders under the IT Dept's scanner include those who deposited over 5 lakh. Data analytics has been used for comparing the demonetisation data with information in ITD databases. In the first batch, around 18 lakh persons were identified in whose case, cash transactions do not appear to be in line with the tax payer's profile".
I-T has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources.
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).
In absence of a response, they will receive a notice from the tax department or further action.