Only 12 lakh out of the 18 lakh individuals, identified by the Income Tax department for making cash deposits during the demonetisation drive, which were not in line with their tax profiles, responded to the IT department, explaining their positions as required under Operation Clean Money.
The remaining six lakh individuals had not responded till the last day (February 15) of filing responses.
Out of the 12 lakh cases, those meeting the low-risk criteria will be closed centrally and the ones not closed automatically will be sent in batches to assessing officers for verification. According to an official from the Central Board of Direct Taxes (CBDT) who did not want to be named, it has so far referred 4.4 lakh cases to field officers.
The cases referred to the field officers will be verified by the assessing officers, who will check each piece of information and take a decision whether the explanations provided are satisfactory or not.
If the explanations are not found satisfactory, notices will be sent to the individuals concerned. The tax department sources have said that so far, no notices have been sent to any individual.
In cases where individuals have not responded to the letters issued by the department, it can resort to survey/search proceedings, if required.
The 18 lakh cases selected for scrutiny by the department have been picked from the data on cash deposits, provided by the banks till January 10, 2017. The department is scanning the information received after January 10 and till January 31, and it may soon come out with another set of depositors, whose cash transactions do not match their tax profiles.