18 lakh suspicious deposits after demonetisation

After identifying 'suspicious' cash deposits by around 18 lakh people post demonetisation, the government on Tuesday launched “Operation Clean Money”' to catch those who used the opportunity to turn their illicit money white. The Income Tax Department (I-T) is embarking on e-verification of large cash deposits made between November 9 and December 30. 

It will send emails and text messages to these people, seeking explanation about their source of funds. They will have to reply within 10 days to avoid any notice from the department or further enforcement action. The replies can be filed by logging on to the I-T department's e-filing portal. Data analytics has been used for comparing the demonetisation data with information in I-T databases.

Around 18 lakh people have so



far been identified in whose case cash transactions did not appear to be in line with the taxpayer’s profile. "Operation Clean Money is a programming software which will be used to get answers on all the deposits made. Only after seeking preliminary answers, if need be, we would take legal action against those people," Revenue Secretary Hasmukh Adhia said.

Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said the authorities are putting online data of those who have deposited over Rs 5 lakh, made deposits between Rs 3 lakh and Rs 5 lakh of suspicious nature or shown poor tax compliance. The I-T department has compiled huge data which shows that there are over one crore accounts in which above Rs 2 lakh has been deposited and involves unique PAN of 70 lakh people.