Operation Clean Money will be top priority for tax officials in this quarter, according to the Central Board of Direct Taxes, which has circulated a detailed action plan and directed field officers to complete verification of cash deposited in banks since
demonetisation by May 31.
The apex direct taxes body has asked officials to prepare a master list of reporting entities in the context of Statement of Financial Transaction (SFT), which was required to be filed by January 31 for cash deposited during the demonetisation drive. This
is being done to ensure appropriate action is taken including levy of penalty against reporting entities that have not registered with the department and those that have not filed SFT.The CBDT has given a deadline of June 30 for all cases pending for verification
of demonetised data sans permanent account number.
Rajiv Chugh, tax partner at EY India said, “Clean and Swachh continues to be the government's mantra post demonetisation and the current quarter action plan suggests measures by CBDT to use technology to catch defaulters, who failed to come forward under
the amnesty schemes.“
This shows that the government means business and is going all out to get master data around cash deposits, Chugh said.
“But, as always, honest taxpayers may also get notices and will need to withstand this onslaught,“ he said. - www.economictimes.indiatimes.com [20-04-2017]