The Income tax department has sent mails to all assesses where
cash deposit compliance was required to be submitted as per information sent by
banks to the income tax department. Now date for such submission has been
extended to 15.02.2017. In continuation to our earlier post Now we are trying
to answer other queries received and FAQs issued by the department.
·
Modification of Cash Deposit Amount
ü
If the cash deposit amount displayed is not
correct mention the correct amount under A.5. Such cases may be sent to the information source for
confirmation.
ü
The cash deposit includes both specified bank
notes as well as other currency ( Old and New) irrespective of the denomination.
ü
Bank account pertaining is reported more than once on efiling portal
the details for one account may be submitted and an amount of zero can be
mentioned in the amount column of the repeated account and the remarks
“duplicate bank account” may be entered in the remark column.
·
Explanations of Source of Cash Deposits
ü
If cash
is from more than one category, the source of cash may be assigned in
sequential manner as follows:
a) Cash withdrawn from bank account (Refer B.3)
b) Cash received from identifiable persons (with PAN) (Refer B.4)
c) Cash received from identifiable persons (without PAN) (Refer B.5)
d) Cash received from un-identifiable persons (Refer B.6)
e) Cash out of receipts exempt from tax (Refer B.2)
f) Cash out of earlier income or savings (Refer B.1)
g) Cash Disclosed/To be disclosed under PMGKY (Refer B.7)
Adopting other sequence may result in case being selected for
verification based on risk criteria.
ü
Cash
deposit is out of cash in hand as on 8th November 2016 the source of
cash may be assigned under sequential manner as follows:
a) Cash withdrawn from bank (B.3)
b) Cash received from identifiable persons (with PAN) (B.4)
c) Cash received from identifiable persons (without PAN) (B.5)
d) Cash received from un-identifiable persons (B.6)
e) Cash out of receipts exempt from tax (B.2)
f) Cash out of earlier income or savings (B.1)
g) Cash Disclosed/To be disclosed under PMGKY (B.7)
Adopting other sequence
may result in case being selected for verification based on risk criteria.
ü
Cash out of earlier income or savings
a)
For an individual having no business income,
cash out of earlier income or savings means cash out of savings as on 8th
November 2016.
b)
For Business Income the cash balance as on 31.03.16
can be taken as cash out of earlier income or savings.
ü
Cash deposited
out of withdrawal from bank accounts the dates and other details for withdrawal(s)
from other bank accounts can be specified in the remarks column of B.3.
ü
Cash
out of receipts exempt from tax is to be used for taxpayers not
involved in business and cash deposited out of exempt income e.g. agricultural
income.
ü
Cash deposited by entities having exempt income e.g.
charitable trust can follow the sequential order for the source of cash deposits as given hereunder:
a)
Cash withdrawn from bank account (B.3)
b)
Cash received from identifiable persons (with
PAN) (B.4)
c)
Cash received from identifiable persons (without
PAN) (B.5)
d)
Cash received from un-identifiable persons (B.6)
e)
Cash out of earlier income or savings (Refer
B.1) – closing cash balance as on 31st March 2016
Adopting other sequence
may result in case being selected for verification based on risk criteria.
ü
Cash
deposited out of cash sales of business the cash may be assigned under
various categories in sequential manner as follows:
a)
Cash received from identifiable persons (with
PAN) (B.4)
b)
Cash received from identifiable persons (without
PAN) (B.5)
c)
Cash received from un-identifiable persons (B.6)
d)
Cash out of earlier income or savings (B.1) -
closing cash balance as on 31st March 2016.
The taxpayer is advised to provide the details
of identifiable person (with PAN) to reduce the chances of the case being
selected for verification. Adopting other sequence may result in case being
selected for verification based on risk criteria.
ü Cash Deposit by Professionals e.g doctors
having cash receipts on daily basis the cash may be assigned under
various categories in sequential manner as follows
a) Cash received from
identifiable persons (with PAN) (B.4)
b) Cash received from
identifiable persons (without PAN) (B.5)
c) Cash received from
un-identifiable persons (B.6)
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 either in B.4 or B.5, as the case may be.
ü
Cash from tuition fees, tailoring etc being professional or business income in
nature is to be reported as ‘cash sales’ under ‘Nature of Transaction’ and same
sequence of B.4, B.5 or B.6 is to be followed.
ü
Cash deposited out of gifts received should necessarily be filled in row B.4,
B.5 or B.6 in the response option form. 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, the details are to be provided either in B.4 or B.5.
ü
Cash salary/
advance salary received then the
name and respective details of the employer from whom salary/advance salary in
cash has been received may be provided in B.4 or B.5.
ü
Cash
deposited out of cash declared under Income Declaration Scheme, 2016 the
cash deposited should be entered under “Cash out of earlier income or savings”
(B.1) and in remarks column the particulars of such declaration filed should be
mentioned.
·
Uploading data using CSV
ü
The details of identifiable persons (with or
without PAN) from whom cash has been received can be provided on the online
portal in a CSV format file.
ü
All the mandatory are to be provided and no
blank rows in the CSV file can be uploaded.
·
Revision of Response
ü
After submission if someone wants to revise / to
modify or change response or explanation provided can re-submit the response.
·
Verification of Response
ü
All cases will not be selected for verification.
ü
If selected for verification then may provide
additional information.
ü
The cases selected for verification will be
communicated on E mail for further information.
ü
The nature of business will be considered while
assessing the response.
