I.T. To Investigate Bank Accounts Deposit Over 5 Lakhs


CBDT i.e. the Central Board Of Direct Taxes has determined to fissure the thrash on those who fail to authenticate cash deposits of Rs 5 lakh or more throughout the demonetisation drive while choosing to go easy on low-risk cases. It has also asked officers to operate adjacent to those who have accessible or repaid loans in cash which exert a pull on 100 penalties.

Underneath the law, no loans can be advanced in cash even to friends and cannot be repaid loans in cash. This has been done to shun a circumstance where cash is shown as a loan or repayment something that has been evaded in latest years. With a preponderance of the 18 lakh who had deposited more than Rs 5 lakh cash into their bank accounts failing to electronically authenticate the funds, the tax department has been forced to shove the cases to its field officers but with a clear message that the intact procedure should be electronic and non-intrusive.

CBDT allege that ‘it is reiterated that no independent inquiry or third party verification is needed to be made by the assessing officer outside the online portal. Whatever information is essential for verification, the same has to be gathered all the way through the person under authentication using online podium only. Even telephonic queries are to be avoided ‘.

Spaced out from insisting on ‘very polite language, all information needed for supplementary verification has to correspond within five days. The steps are meant to make certain that taxpayers are not harassed and the whole procedure is translucent. At the equivalent time, the tax department needs its field officers to undoubtedly state if the data submitted by those under the lens is acceptable or con acceptable. The officer has to shoot up the ‘no acceptable ‘rejoinder for ‘possible tax evasion’.

The authentic focus is nevertheless on those who so far failed to verify the deposits on the e-filling portal. As the tax agency alleged that ‘in case the person underneath verification does not retort within the time frame prescribed, it might lead to a doable inference that the cash deposit under verification is definitely undisclosed and as a result the AO i.e. assessing officer may indulgence these cases under the non-acceptable category with pertinent remarks. It, however, prudence that officers need to factor in phases like family size, financial status, and the person’s background while forming an outlook on the quantum of undisclosed earnings.

Those who fail to act in accordance with the verification necessities will see their profile examined comprising the tax deducted at source and the information obtainable under the Annual Information Return that confines elevated value transactions. In case the cash deposit is not in line with the former returns or information profile, officers have been inquired to call for further information and also commence surveys which engross scrutiny of books. CBDT has also asked its officers to submit some of the cases to the investigation department.

In the case the transaction being loan received or repaid in cash above the permissible threshold comes to notice, the AO may consider initiation of penal proceedings under the relevant provisions separately.


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