Saturday, February 4, 2017

File response in compliance of query for Cash Deposits during 09-11-2016 to 30-12-2016

The Income Tax department has asked taxpayers to verify online the deposits they have made in their accounts post de-monetization and respond to queries of any mismatch. Such response is desired to be filed within 10 days of such intimation through mail. Such mail is being sent by the department on both the E mail IDs in profile of the assessee on Income Tax Portal.
The department is using data analytics for comparison of deposits made after the November 8 decision to scrap high-value banknotes with information in its database to identify taxpayers whose cash transactions do not appear to be in line with the tax-paying profile.
With a view to avoiding undue harassment, it has now enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimizing its resources.
To help taxpayers, it has now brought out a user guide.
Online Verification of Cash Deposits during 9th November to 30th December 2016 Data analytics has been used for comparison of demonetization data with information in ITD databases to identify taxpayers wherein the cash transaction does not appear to be in line with the taxpayer’s profile.
Taxpayers who are not yet registered on the e-filing portal (at should register by clicking on the ‘Register Yourself’ link. Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.
The information relating to cash deposits will be displayed to the PAN holder in the e-filing portal (after log in). The taxpayer can view the information as under
Step 1: Login to e-filing portal at
·  Step 2: Click on “Cash Transactions 2016” link under “Compliance” section
.·  Step 3: The details of transactions related to cash deposits during 9th Nov to 30th Dec 2016 will be displayed.
 Submission of response
The user is provided with two options i.e. “The account relates to this PAN” and “The account does not relate to this PAN”. If the user selects the response option “The Account does not relate to this PAN” then message “Your feedback will be sent to the information source for confirmation.” will be displayed. If the user selects the response option “The account relates to this PAN” the screen for capturing details will be displayed to the user. At this stage, the user will be able to modify the value of cash deposit (if it is different than the displayed value). The user will also be able to provide the explanation of transaction (source of cash deposit). The various categories for providing the explanation of cash deposit are:
·        Cash out of earlier income or savings
·         Cash out of receipts exempt from tax
·          Cash withdrawn out of bank account
·          Cash received from identifiable persons (with PAN)
·         Cash received from identifiable persons (without PAN)
·          Cash received from un-identifiable persons
·         Cash Disclosed/To be disclosed under PMGKY
In case the taxpayer claims that cash was received from other persons, the person wise details is required to be submitted electronically in csv format as given by Income Tax Department in csv template download.
The Particulars of details are as follows:
Ø PAN Wise List of persons with transaction details
PAN of person
Name of person
Nature of Transaction
Amount Received

Ø Account Wise List
IFS Code( in case of Bank account)
Account Number
Amount Withdrawn
Ø Person Wise List for identifiable persons ( without PAN)
Name of person
Address of person
Pincode of person
Nature of transaction
Amount Received

Ø Transaction Wise List from unidentifiable persons
Nature of transaction
Amount Received

 The user is also required to submit details of other bank accounts (other than the one displayed) in which specified bank notes (SBN) has been deposited.
Special Care:
ü After downloading the template file. The Assessee can fill in the information and save file without special characters and without changing the file format with option available in save as file as csv (comma Delimited)  *.csv format.
ü After creating the file in excel save the file in *.csv file browse for the file so saved at choose file option of the relevant info column and then select upload file.
ü After uploading the files for all the options of sources of cash it will show in the last column the balance unexplained.
ü Before unexplained cash balance there is option in B-7
Cash Disclosed / to be disclosed in PMGKY
ü Submit or Back – Select Submit
Edit the response
ü After submitting successfully massage is being sent to mail.
ü The assessee has the option to View and Edit the same any time after that.
ü There is one option which nobody should forget that if the bank account where cash has been deposited if not shown now in the data base but account has been used for deposit of cash can be reported now at the time of filing response.
Verification of case
 Data analytics will be used to select cases for verification based on approved risk criteria. If the case is selected for verification, request for additional information and its response will also be communicated electronically. The information on the online portal is dynamic and will be updated on receipt of new information, response and data analytics.
Compiled by: Suhasini Dang ( CA Finalist) at Sandeep Ahuja & Co