Are You In Receipt Of Notice From Tax Department For Deposit Inconsistency: Here’s What You Need To

As a part of its second phase of the Operation Black Money drive, the tax department has identified as many as 5,56,000 individuals. In the first phase the government identified as many as 1.8 million individuals whose cash deposits made during demonetization move did not matched their tax profiles.

 Are You In Receipt Of Notice From Tax Department For Deposit Inconsistency: Here’s What You Need To

These individuals who were asked to report for the mismatches need to provide in all the details at the e-filing website. As per the tax experts, now the details have to be as a justification for the various transactions has to be accounted for in the returns.

If you are among those who have received a notice then login to your e-filing account using login id as your PAN number and an account can be created using PAN as well as date of birth. There you will find the tab ‘compliance’ under which you need to click on the ‘Cash transactions 2016’ in the drop down list. The option also is available on the dashboard of the income tax e-filing page. Those transactions and deposits that are not in tune with your earlier tax filing and profile shall be reflecting in that account. And clarification in this regard has to be provided on the website only.

Deposits explaination

The deposited amount has to revealed in correct, after that the necessary action shall be taken by the tax authorities. In case the amount is deposited from different sources, details of each such source as well as the amount have to be specified.

In a case when you put up a clarification stating that the deposits has been made from earlier savings or income, proof in lieu of that needs to be provided as tax returns. If the department finds a mismatch, a verification can be conducted by the authorities.

In other instance, when the cash deposited during the demonetization wake, has been received from some person then the details have to be specified as break-up under either of the three heads; cash received from identifiable persons (with PAN), cash received from identifiable persons (without PAN) and cash received from unidentifiable person (without PAN).

A specification can be mentioned that the details of the cash deposit have been disclosed or are still to be disclosed under the Pradhan Mantri Garib Kalyan Yojana or scheme.

So, under the compliance tab in your e-filing account , you need to acknowledge whether the listed transaction as well as the associated amount is correct or not. And a proper explaination has to be given to the tax department with all relevant details.

 

Source by goodreturns..