The Income-Tax department has sent notifications to 18 lakh people. (Generic photo)
The Income-Tax department has placed nearly half of the 18 lakh people, already under its scanner for suspicious bank deposits post cash-ban, in the 'doubtful' category, but stopped short of taking any action against them till the new tax amnesty scheme ends on March 31.
Under its 'Operation Clean Money', the department had sent SMS and e-mails to over 18 lakh people, who according to its data analysis had made murky deposits of over Rs 5 lakh during the 50-day window provided to get rid of old 500 and 1,000 rupee notes following the demonetisation decision announced on November 8. They were asked to come clean on the deposits and clarify the source by February 15.
Sources in the I-T department said those who did not reply must have "good legal explanation" for their cash stash and might have chosen to show them in tax returns.
But a mere revealing of the same in the income tax returns files is not sufficient. Any anomalous hike in income of an individual for 2016-17 over previous years will be considered as unaccounted wealth or black money and the owner will be dealt with as per law.
"Since the SMS and e-mail correspondence do not have any legal backing, the I-T department will have to send formal notices and wait till March 31 for the end of its tax amnesty scheme, Pradhan Mantri Garib Kalyan Yojana (PMGKY) and then take action in doubtful cases," a source told reporters.
Under PMGKY, those with unaccounted cash have been offered a chance to come clean by paying 50 per cent of it as tax, penalty and surcharge while parking an additional 25 per cent in a non-interest bearing deposit for four years.
Sources said as many as 9 lakh accounts of the 18 lakh people, who have got SMS, are considered "doubtful".
As many as 5.27 lakh people, of the 18 lakh who were sent SMS and e-mails, had submitted their response till February 12.
Of the 5.27 lakh, 99.5 per cent have confirmed the amount they have deposited in cash during the 50-day window that ended December 30. These deposits were made in 7.41 lakh bank accounts.
The source added that strict enforcement action can only be taken if an individual does not reply to notices or deliberately try to concoct disclosures in ITR.
The tax department has also identified around 4.84 lakh taxpayers not yet registered with the e-filing portal and has sent SMS to them to register.