Income tax dept extends response window on cash deposit details to 15 February

New Delhi: The Income Tax department on Saturday extended the date for replying to the queries on cash deposits during the demonetisation period to 15 February and asked people to declare details of cash donations or gifts of Rs20,000 or more to reduce the chances of further scrutiny.

In an FAQ to clear the doubts over replying to SMS or email queries received with regard to suspicious deposits made post demonetisation, the tax department said assessees should give “explanations” of the source of cash. If the cash deposited is from multiple sources or arises from cash in hand as on 8 November, the assessee while replying on the e-filing portal will



have to give segregated details—cash withdrawn from bank, cash received from identifiable persons with or without PAN, cash received from unidentifiable persons and cash out of earlier income or savings.

The assessee can also report how much he has deposited or will deposit under the PMGKY scheme, in which he can pay 50% tax and penalty and come clean. “The taxpayer is advised to provide the details of identifiable person (with PAN) to reduce the chances of the case being selected for verification. In case of cash receipts of Rs 20,000 or more from a single person, it is expected that the details are provided...,” the I-T department said.