Demonetisation – Submission of Online Response for verification of Cash Deposits

The Income Tax Department has published a User Guide for assisting the tax payer in submitting online response for transactions related to cash deposits during the demonetization period.

A brief summary of the User Guide is as under :

The User Guide states that Cash transaction data is only shown in cases where it does not appear to be in line with the taxpayer profile.

Viewing information

The information relating to cash deposits is displayed in the PAN holders account in the e-filing portal (after log in) under the “Compliance” section under the title “Cash Transactions 2016”.

The information of cash deposits is displayed as under

Account Details

A.1 Bank / Institution

A.2 Branch / IFSC Code

A.3 Account Number

A.4 Cash Deposit in the account between 9^th Nov2016 and

30^th Dec 2016 (as reported)

A.5  Cash Deposit in the account between 9^th Nov2016 and

30^th Dec 2016 (as confirmed)

Submission of response

Confirmation of account

• In the first step the taxpayer is provided with two options i.e “The account relates to this PAN” and “The account does not relate to this PAN”.

• Further details are required to be provided only in the second step if the taxpayer confirms that the account relates to the taxpayer.

• If the taxpayer selects the option “The account does not relate to this PAN” then the message “your feedback will be sent to the information source for confirmation” will be displayed. On clicking the submit button, the success message alongwith the transaction ID is displayed on the screen.

Explanation of cash deposit

• If the taxpayer selects the option “The account relates to this PAN” the screen for capturing details will be displayed to the user.
• At  this stage the taxpayer will be able to modify the value of cash deposit, if it is different from the displayed value.
• The taxpayer then has to provide the explanation of the transaction (source of cash deposit) digitally without visiting the Income tax office.

Various categories for providing explanation are :

1. Source of Cash Deposit

B.1 Cash out of income or savings- Amount + Remarks

B.2 Cash out of receipts exempt from tax-Amount + Remarks

B.3 Cash withdrawn out of bank account-Account wise list

B.4 Cash received from identifiable persons (with PAN)-PAN wise list

B.5 Cash received from identifiable persons (without PAN)-Person wise list

B.6 Cash received from unidentifiable persons-Nature of transaction wise list

B.7 Cash Disclosed/to be disclosed under PMGKY-Amount + Remarks

B.8 Balance  (A.5-B.1, B.2, B.3,B.4,B.5)-Computed

Important aspects regarding submission of response

1. If the cash deposit under A.4 is not correct please mention the correct amount under A.5.

The Income Tax Department (ITD) intends to refer such cases to the information source for confirmation.

2. The sum of all sources of cash deposits (B.1 to B.7) should match with the confirmed cash deposit amount (A.5) such that the balance (B.8) is computed as 0.

3. Cash received from other persons

If cash is received from other persons (on account of cash sales, loan, gift, donation etc.), it should be mentioned under B.4, B.5 or B.6 as the case may be. The nature of cash transaction can be mentioned while providing the details.

4. If cash is claimed to be from more than one category (or out of cash in hand), the source of cash may be assigned under various categories in the following sequence (Adopting other sequence may result in case being selected based on risk criteria).

a) Cash withdrawn out of 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 unidentifiable persons without PAN (B.6)

e) Cash out of receipts exempt from tax (B.2)

f) Cash out of income or savings (B.1)

g) Cash Disclosed/to be disclosed under PMGKY (B.7)

6. If cash deposited is claimed to be, out of the receipts exempt from tax (B.2) or out of earlier income or savings (B.1), is not in line with the taxpayer profile or other information available, he case may be selected for verification based on risk criteria.

7. The user guide requires the taxpayer to suo moto submit the details of other bank accounts (other than the one displayed) in which specified bank notes (SBN) has been deposited and provide the explanation of the said deposits

Uploading lists using CSV

A facility has been  provided to enable upload of CSV ( Comma Separated Values) files in following categories

B.3 Cash withdrawn out of bank account

B.4 Cash received from identifiable persons (with PAN)

B.5 Cash received from identifiable persons (without PAN)

B.6 Cash received from unidentifiable persons

The taxpayer has to download the respective template and upload the same after entering the data required as per the template.

Data format for Cash withdrawn out of bank account (B.3)

Account wise list

Bank/Institution	IFSC Code	Account Number	Amount Withdrawn	Remarks

Data format for Cash received from identifiable person with PAN (B.4)

Person wise list

PAN of person	Name of person	Nature of transaction	Amount received	Remarks

Data format for Cash received from identifiable person without PAN (B.5)

Person wise list

Name of person	Address of person	Pin Code	Nature of transaction	Amount received	Remarks

 Data format for Cash received from un-identifiable person without PAN (B.6)

Nature of Transaction wise list

Nature of transaction	Amount received	Remarks

In the CSV Template the “Nature of Transaction” should be entered as per the codes mentioned below :

Drop down	Code to be specified in CSV (case sensitive)
Cash Sales	RS
Loan received in Cash	RL
Loan repayment in Cash	RR
Gift received in Cash	RG
Donation received in Cash	RD
Other Cash Receipt	RO

- See more at: http://taxguru.in/income-tax/demonetisation-submission-online-response-verification-cash-deposits.html#sthash.AvuL6CGz.dpuf