Verification of cash deposits & other Undisclosed income under 'Operation Clean Money'
- On January 31, 2017 the Income Tax Department initiated Operation Clean Money to investigate the sizable cash deposits made between November 9 and December 30, 2016. This operation was started with the intention of checking the taxpayer's cash transaction history, namely if they exchanged or saved banned notes during the demonetisation period and imposing strict measures if they didn't.
- Operation Clean Money's objective is to create a society where paying taxes is a source of pride for every Indian by establishing fair, transparent, and non-intrusive administration.
- Income tax department now issuing of notice U/s 133(6) for verification of cash deposits or any other kind of undisclosed under 'Operation Clean Money'
Income tax Portal of starting operation clean money:
The govt launched the Income tax Portal of Operation Clean Money i.e. https://www.cleanmoney.gov.in on 16th May 2017 having below particular charterstics :
- Enabling Transparent Tax Administration
- Enabling Citizen Engagement
- Providing Comprehensive Information
1st Phase of the Income tax dept - Operation Clean Money
There are three key areas on which the 1st phase needed to focused :
- Preliminary Assessment : under this income tax assessment was completed for the time of demonetization where the account holders account of the income tax depositors was compared & reconciled with their income tax profile of assesee and notices has been issue,.
- e-Verification Process : as per Tax department report out of 17,92,000/- account and 13,40,000/- account holder responses on online against the notices,
- Targeted Enforcement Actions : approx. 8240 case of survey has been initiated. Around 400 case are refer to CBI/ ED and around 900 groups serarch conducted & value of 950 Cr assets seized.
2nd Phase of the Income tax dept - Operation Clean Money
2nd Phase of Income tax department Operation Clean Money around 5,56,000/- Taxpayers Identified for Scrutiny under the income tax act. 2nd phase of Operation Clean Money is to undertake actions against income tax assesee like:
- Identification of High-risk Cases using Advanced Analytical Techniques
- Enable Citizen Engagement
- Ensuring Complete and Accurate Reporting of Information
- Identification of New Cases for Online Verification
- Differentiated Targeted Treatment
- Comprehensive Risk Assessment
Operation Clean Money's objective is to create a society where paying taxes is a source of pride for every Indian by adopting fair, transparent, and non-intrusive administration. It is iniatavtive made by Govt of india to better tax adminstatrion in india.
New Update on Income tax law :
- ITAT Chennai branch has held that cash deposit of such notes, being selling consideration obtained from property sale transation, cannot be subject to addition under the Income Tax Act, so there was no legal restriction in dealing with them until December 31, 2022.