Money & Banking

I-T Dept moves to collect data on cash deposits during DeMon

Rahul Wadke Mumbai | Updated on August 12, 2019 Published on August 12, 2019

Creates 17-point checklist to detect black money

The I-T Department has spread its net wide and deep for catching those who have deposited unaccounted cash during demonetisation. In the latest directive to the officers, a 17-point checklist has been created, which has to be updated on a server for further action.

The directive, which was issued on Friday is the ninth communication issued by the Finance Ministry through the Central Board Direct Taxes (CBDT).

A senior I-T officer told BusinessLine that till date three Standard Operating Procedures, one FAQ and four other letters have already been issued but an exhaustive checklist, directing seven of the 17 tasks to be divided into further smaller tasks is unprecedented in the demonetisation cases. Uploading the checklist to a central server shows the micromanagement, which is being exercised from New Delhi.

A copy of the checklist, which has been reviewed by the BusinessLine, seeks to collect details on whether the cash deposited in banks by the taxpayer between November 9 and December 31, 2016, has been disputed by the taxman. The percentage of cash deposited to the gross total income, which includes exemption income has also been sought.

In case of non-business tax assessees, the nature cash deposit, whether it was repayment of a loan amount, gift, sale or advance for sale of land has to be mentioned in the checklist, which is to be ‘tick- marked’ by the Assessing Officer. Through the checklist, the CBDT seeks to know the quantum of accounted and unaccounted cash deposited by the assessees. It also wants to know, the nature of explanation provided by the assessees to the I-T officers for the cash deposits.

For banks, the details are further drilled down, which includes total cash deposits in Fiscal 2015-16 and 2016-17. Data on total cash deposited in the demonetisation time window (November 9 and December 31, 2016) and the comparable period in the previous year will be sought.

The I-T officer added that the voluminous data being uploaded in the servers will enable the CBDT to understand the nature of black money generated in the country. It is also an effort of the Modi government to show that demonetisation was a success based on tax demand raised on those who had hoarded black money.

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Published on August 12, 2019
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