Operation Clean Money

0
200
Operation Clean Money OCM

Operation Clean Money – Online verification of accounts

FOR VIEWING LATEST CURRENT AFFAIRS >> CLICK HERE

Operation Clean Money: Background

  • On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series.
  • The government intention behind the demonetisation is to curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism.
  • Government has given a time limit up to 31st December 2016 to deposit the cash holdings in bank or to exchange for new currency notes.
  • In this period most of the individuals deposited their cash hoardings into their bank accounts.

Operation Clean money

Operation Clean Money: Campaign

  • Income Tax Department (ITD) initiated Operation Clean Money involves e-verification of large cash deposits made between November 9, 2016, and December 30, 2016..
  • Data analytics has been used for comparing the demonetisation data with information in ITD databases.
  • In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile.

Operation Clean Money: Process

  • ITD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources.
  • The information in respect of these cases is being made available in the e-filing window of the PAN holder (after log in) at the portal https://incometaxindiaefiling.gov.in.
  • The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal.
  • The taxpayer will be able to submit online explanation without any need to visit Income Tax office.
  • Email and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal.
  • Taxpayers who are not yet registered on the e-filing portal (at https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link.
  • Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.

Operation Clean Money: Action

  • 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).
  • The taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act as also other applicable laws.

FOR VIEWING LATEST CURRENT AFFAIRS >> CLICK HERE