The tax department will not carry out any further verification for cash deposits of up to Rs.5 lakh made by people above 70 years of age post note ban. The limit for other individuals has been fixed at Rs.2.5 lakh. These verifications are being sought to be done online and any person of up to 70 years of age, who has deposited more than Rs.2.5 lakh in cash, has to go to I-T department website and explain the source of deposit. If the deposits match with previous income tax returns, the verification will be closed at that stage itself, he said, adding that only if a depositor does not verify, or there is suspicion on deposits not matching with known sources of income, will further clarifications be sought.
The official said that even the further non-statutory clarifications will be sought without issuing a show-cause or any notice. “No inquiry or third party verification will be initiated outside the e-verification.” The online verification of deposits made is being done to reduce compliance cost for persons under verification, he said.
As per I-T records, 18 lakh people have made suspicious deposits of over Rs.5 lakh in their bank accounts, totalling Rs.4.5 lakh crore.
Email and SMSes were sent to persons under verification for submitting online response on the e-filing. Those who have not yet registered on the e-filing portal must do so immediately.