Deposits Up To Rs 2.5 Lakh Will Not Be Questioned: CBDT

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Providing clarity on scrutiny of deposits made in banks post demonetisation, I-T department on Monday said no questions will be asked about deposits of up to Rs 2.5 lakh and only those accounts will be probed that do not match the tax returns.

Using Big Data analytics, the Income Tax Department has segregated different kinds of deposits and large ones like more than Rs 1 crore that do not match with income tax returns filed in previous years will be taken for "layer enforcement". Penalty For Receiving Cash Over Rs 3 Lakh

"There is no need to fear for any genuine person. We will ensure there is no harassment to a genuine person," Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra told PTI.

Deposits Up To Rs 2.5 Lakh Will Not Be Questioned: CBDT

The department, he said, has accumulated a large data on deposits made in banks after the government banned old Rs 500 and Rs 1000 notes on November 8. Operation Clean Money: Taxman Scans 1 Crore Accounts

"We found (and segregated) the data (for deposits) between Rs 2 lakh and Rs 80 lakh and Rs 80 lakh and above. As the Prime Minister has clearly said that (for deposits) up to Rs 2.5 lakh we will not ask (questions), so we have put that data aside at the moment," he said.

The tax department has used its data bank to run all deposits exceeding Rs 5 lakh made during the 50-day window provided post demonetization to get rid of junked notes, he said.

Giving examples, he said deposits of Rs 3 lakh are "justified" if a person has an annual taxable income of Rs 10 lakh and the tax department will "not touch" him.

Importantly, if companies show a cash in hand on the balance sheet of Rs 10 lakh and have deposited Rs 5 lakh, the tax department will not scrutinize those.

"But if you have deposited Rs 5 lakh and you have not filed the return of last three years, that I should touch (for scrutiny)," he said. "Similarly if you file income tax return (ITR) of Rs 2.5 lakh income but you deposit Rs 10 lakh in different bank accounts, I should ask about it."

Goodreturns.in 

Read more about: cbdt, income tax
Story first published: Tuesday, February 7, 2017, 11:03 [IST]
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