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Only where it is absolutely not matching, action will be taken and the concerned account holder will be subjected to ‘layer enforcement’. However, what he meant by ‘layer enforcement’ has not been explained.
No scrutiny on post demonetization deposits upto Rs. 2.5 lakh
News & FAQs | By Editor | Last updated on Feb 8, 2017
On the matter of scrutiny of deposits, the IT department has issued a clarification. As per this clarification, there will be no scrutiny of deposits of upto Rs. 2,5 lakhs made in the banks in the post demonetization period. Only those accounts will be subjected to scrutiny which does not tally the Income Tax Returns filed.
Big data analytics has been used for the purpose of segregation of different kinds of deposits. Large deposits like more than 1 crore,which do not match with the ITR filed in previous years will be subjected to scrutiny.
The I-T department has accumulated a large data on deposits made in banks after the government banned old Rs 500 and Rs 1,000 notes on November 8, he said at industry body CII’s post-Budget seminar.
“We found (and segregated) the data (for deposits) between Rs 2 lakh and Rs 80 lakh, and Rs 80 lakh and above. As the Prime Minister has clearly said that (for deposits) up to Rs 2.5 lakh we will not ask (questions), so we have put that data aside at the moment,” Sushil Chandra, Chairman, Central Board of Direct Taxes said.
The tax department has used its data bank to run all deposits exceeding Rs 5 lakh made during the 50-day window provided post-demonetisation to get rid of junked notes, he said.
Giving examples, he said deposits of Rs 3 lakh are “justified” if a person has an annual taxable income of Rs 10 lakh and the tax department will “not touch” him.
Importantly, if there are companies that show a cash in hand in balance sheet of Rs 10 lakh and have deposited Rs 5 lakh, they will not be scrutinised by the tax department.
