Income Tax Dept new move -Operation Clean Money


(Last Updated On: May 7, 2019)

Operation Clean Money: The boldest and most decisive step that the Government of India has taken towards identifying and punishing tax evasion and creating an Equitable Indian society.

Read more to find out about “Operation Clean Money”:

What is Operation Clean Money?

Operation Clean Money was launched by Income Tax Department with the mission of “creating a tax compliant society through a fair, transparent and non-intrusive tax administration where every Indian takes pride in paying taxes.

How will Operation Clean Money affect me as a tax payer?

Good Question!

The answer would depend on whether you have something to hide or not!

If you are not hiding anything:

Congratulations! The Income Tax Department appreciates your contribution as a responsible tax-paying citizen.

If you are hiding:

Beware! The Income Tax Department is more clever than you may think , if you have made huge cash transactions during the period 9th November, 2016 to 30th December, 2016 which are disproportionate with your declared income, be ready to receive a Income Tax Department notice asking for explanations about the same. That is if you have not received one already!

What if I am not hiding anything, but still get a notice from Income Tax authorities:

Relax! Data Analysis has been used to select cases for verification: “Technology can make mistakes sometimes”.

So if you are one of those who have nothing to hide from the ITD, then please go ahead and provide the valid explanation for all large cash transaction which you may have made in the above-mentioned period.

Do I need to visit  the Income Tax Department office to declare my reasons?

No, not at all! In order to make compliance an easy process for responsible citizens like you the IT Department has created an option to provide all such explanations online on their official portal.If the explanation provided by you is sufficient and match with the information available with the Income Tax Department, all verification processes opened against you will immediately get closed.

I want to support the Government in its fight against Black Money (money on which tax has not been paid). How can I do that?

You now have an option to volunteer in this great cause initiated by the Government of India. All that you need to do is: Go to the Operation Clean Money website: https://www.cleanmoney.gov.in/ and click on the “I am a Citizen” tab.

How does Operation Clean Money work?

In the initial phases of the operation, assessments of large cash deposits made in the window of 9th November, 2016 to 30th December, 2016 will be done. In order to conduct proper verification and compare demonetization data with Income Tax Department data including data about tax payer’s profile help of data analytics has been used in this respect.

Around 18 lakh individuals have been identified after this exercise.

These individuals will be classified into four risk categories as per the mismatch in profiles.Their description is as under :-

Individuals placed in High Risk category will face prompt action by the income Tax Department including searches, raids, seizes and other enforcement actions.

Individuals placed in Medium Risk category will receive SMS/ E-mails from the department to take corrective measures.

Individuals placed in Low Risk category and Very Low Risk category will be kept under watch by the Department.

Medium Risk category individuals on logging in to the Income Tax Department website  can check such information using the link ‘Cash Transactions 2016’ under the ‘Compliance’ section of the portal.

In order to simplify the compliance process for tax payers, the Income Tax Department has enabled online verification of these transactions, wherein the individual can submit online explanation for the transactions without visiting the Income Tax office.

Moreover, the Tax payers will also receive Email and SMS for submitting online responses on the portal.

Data Analysis will be done following the same to select cases for verification based on above explained risk criteria .For selected cases, additional information and their responses will be submitted electronically.

Responses will be assessed against available information and verifications will be closed if explanations are found justified by the Department. Also for cash deposits declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY), verifications will be closed.

Taxpayers who have received notices in this phase should submit their response on the ITD portal within 10 days in order to avoid receiving notices from ITD and enforcement actions under the Income-Tax Act and other applicable laws.

What Operation Clean Money means for the economy?

Operation Clean Money is the next step to Demonetisation helping the nation move towards Digitization and Tax Compliance.

This will help bring larger section of the earning audience in the tax-payer’s net.This will also help boost the revenues of the Government.With Operation Clean India, the Government is moving towards a more equitable society. Thus,helping foster better growth and greater development of all sections of the Indian society.

Some highlights of Operation Clean Money:

Clean Money Supporter: You can now go to the “I am a Citizen” section of the Operation Clean Money site, and pledge to pay all your taxes on time in an accurate manner voluntarily:

Please click on the “I support Operation Clean Money” button on this page to become a Clean Money Supporter.

Clean Money Contributor: You can now become a contributor to Operation Clean Money. All you need to do is, visit their website
and choose from over 5 different types of contributions which you can make:

Clean Money Participants: You can now engage with Operation Clean Money. For getting regular updates about all actions, events and activities happening at Operation Clean Money just tag yourself by visiting the official website.

Visit our website today for more details:  
https://tax2win.in

 

 

 

 

 

 

 

 

 

 

 

 

 

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.