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Cash gifts of Rs 20,000 or more post cash ban need to be reported to I-T dept

The Assesses Can Also Report How Much He Has Deposited Or Will Deposit Under The PMGKY Scheme, In Which He Can Pay 50 Per Cent Tax And Penalty And Come Clean.

PTI | Updated on: 11 Feb 2017, 08:02:21 PM
Cash gifts of Rs 20,000 or more post cash ban need to be reported to I-T dept

New Delhi:

I-T department on Saturday extended the date for replying to the queries on cash deposits during the demonetisation period to February 15 and asked people to declare details of cash donations or gifts of Rs 20,000 or more to reduce the chances of further scrutiny.

In an FAQ to clear the doubts over replying to SMS or e-mail queries received with regard to suspicious deposits made post note ban, the tax department said assesses should give “explanations” of the source of cash.

If the cash deposited is from multiple sources or arises from cash in hand as on November 8, the assesses while replying on the e-filing portal will have to give segregated details—cash withdrawn from bank, cash received from identifiable persons with or without PAN, cash received from unidentifiable persons and cash out of earlier income or savings.

The assesses can also report how much he has deposited or will deposit under the PMGKY scheme, in which he can pay 50 per cent tax and penalty and come clean.

“The taxpayer is advised to provide the details of identifiable person (with PAN) to reduce the chances of the case being selected for verification. In case of cash receipts of Rs 20,000 or more from a single person, it is expected that the details are provided...,” the I-T department said.

It said cash received by people exempt from taxes like farm income can be shown under the head ‘cash receipts exempt from tax’, only if they are not involved in business.

“Cash out of receipts exempt from tax is expected to be used for taxpayers not involved in business who have received cash out of exempt income, for example agricultural income,” the department said.

In case the assessee has received advance salary, the FAQ said he will have to give the name and respective details of the employer from whom the payment in cash has been received while filing the response on the I-T portal.

On January 31, the tax department had launched ‘Operation Clean Money’ under which it had sent out SMS and e-mails to 18 lakh assesses in the initial phase for suspicious cash deposits of Rs 5 lakh and above made during November 9-December 30, 2016. These people had to reply to these queries by logging onto the e-filing portal within 10 days of receipt of communication.

This timeline has now been extended to February 15.

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First Published : 11 Feb 2017, 07:46:00 PM