oppn parties I-T Notices for Cash Deposits in 2016

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  • RBI says Covid-19 has "drastically altered" the growth outlook in India
  • Third coronavirus death in the Dharavi slum in Mumbai
  • Odisha becomes the first state to extend the lockdown until April 30. Schools and colleges in the state to remain closed until June 17th
  • The Supreme Court orders all coronavirus testing, including by private labs, to be done for free, says will look into the matter of reimbursement for private players at a later date
  • Former Pakistani cricketer Shoaib Akhtar proposes an Indo-Pak ODI series to raise funds for fighting coronavirus
  • Maharashtra government says many Tablighi Jamaat members who attended the Markaz and returned have gone into hiding
  • West Bengal government identifies hotspots in Kolkata and the rest of the state, inclined to extend the lockdown in those places only
  • Prime Minister Modi holds a video conference with floor leaders of opposition parties, hints at extending the lockdown
  • UP seals hotspots and makes masks mandatory
  • Masks made compulsory in Mumbai, violators will be arrested
  • ICMR says an infected person can infect 406 people in 30 days without social distancing and lockdown
  • Stock markets make a smart recovery. Sensex up by record 2476 points on global cues
  • Schools, colleges and shopping malls likely to remain closed for a further period of one month, says empowered group of ministers
  • PM Modi tells BJP workers that India is in for a long battle against the coronavirus and there is no scope to feel tired or defeated
Total Covid-19 cases rise to 5734 on Thursday and the death toll stands at 166, says the health ministry in its daily briefing
oppn parties
I-T Notices for Cash Deposits in 2016

By admin
First publised on 2017-02-03 08:32:26

About the Author

Sunil Garodia By our team of in-house writers.
Pic courtesy: the economic times (modified)

People are talking about the income tax missives that are flooding mobiles and inboxes of PAN card holders. These notices are informing people of the cash deposits of demonetized currency they made in their bank account or accounts between November 8 and December 31, 2016. It is asking them to log on to their accounts at incometaxindiaefiling.gov.in/e-Filing/ to verify and explain the same.

The process is totally online and extremely user friendly. One needs to log on to one’s account as above. Thereafter, one needs to click on the compliance tab and select the option cash deposits in 2016. Once there, the total deposits made by one during the period in all disclosed accounts with PAN will flash on screen. One first needs to verify whether these accounts relate to the PAN mentioned. Then one needs to verify whether the amount stated in each of the bank accounts is correct.

After one has verified that, one is taken to a screen where one needs to explain the source of the funds deposited. Here, one gets several choices:
1. Cash out of earlier income or savings
2. Cash out of receipts exempt from tax
3. Cash withdrawn out of bank account. Under this, one has to give details of accounts and the amounts withdrawn from each such account
4. Cash received from identifiable persons with PAN
5. Cash received from identifiable persons without PAN
6. Cash received from unidentifiable persons
7. Cash disclosed/to be disclosed under PMGKY

One can disclose the full amount under any of the above heads or break it under various heads as needed. Under each head, one has to give additional remarks explaining the reason. One has 10 days to submit the response to these notices. Since the whole process is online, one need not visit the I-T office or meets the Assessing Officer (AO).

Once this is done, one will receive further communication to inform if it has been accepted. If not, the department will ask for documents as proof. These documents will also be needed to be uploaded online initially. If still not accepted, then the person will get a scrutiny notice and will have to appear before the AO with all documents to explain in person or through counsel.

People are talking about the ease of it all and the attempt to prevent corruption by eliminating the needs to visit the I-T office. People are saying that the honest has nothing to fear from these notices and will be able to explain small deposits. It is those who have deposited huge sums whose accounts will be scrutinized that have to worry.