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Did you receive email/SMS for cash transaction made during Nov and Dec 2016

Did you receive email/SMS for cash transaction made during Nov and Dec 2016


Income Tax Department (ITD) has initiated Operation Clean Money and started sending email and SMS for e-verification of large cash deposits made during 9th November to 30th December 2016.


Data analytics has been used for comparing the demonetisation data with information in ITD databases. In the first batch, around 18 lakh persons have been identified by tax department as their transactions did not match their tax profile. Cases are being selected for verification on the basis of approved risk criteria.


 The tax department has enabled online verification of these transactions to ensure people do not face harassment at the hands of tax officials. Every PAN holder will be able to view information about his or her transaction of cash deposit selected for verification using income tax e-filing portal.


In the initial phase, the department will put up data of persons who have deposited Rs. 5 Lakhs or more suspicious transactions.


The information in respect of these cases is being made available in the e-filing window of the PAN holder (after log in) at the portal The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal.


If department satisfied with response submitted, there will be no follow-up. If they are not satisfied, the case may selected for further verification, request for additional information and its response will also be communicated electronically.


The information on the online portal will be dynamic getting updated on receipt of new information, response and data analytics. The response of taxpayer will be assessed against available information.


In case explanation of source of cash is found justified, the verification will be closed without any need to visit Income Tax Office. The verification will also be closed if the cash deposit is declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY).

The taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act as also other applicable laws.


Before submitting any response to the notice, it is advisable to understand legal consequences on the data submitted through the response. For example if you select option “Loan received in cash” as source of cash receipt, you may end up in paying penalty. As per income tax penalty equivalent to the amount of loan can be levied.


You can approach us if you need any professional help in handling income tax notice and other income tax representation services.



Balakrishna and co a chartered accountant firm and e-Return intermediary (ERI) authorised by the income tax department can help you in understanding legal implication before submitting response to notice received for cash transactions.



Following email communication sent by income tax department:



Income-tax Department (ITD) has received 1 information record(s) showing total cash deposits of Rs. 666000 relating to you. ITD has enabled online verification of the cash transactions and there is no need to visit Income tax office for submission of response. The information in respect of these cases has been made available in the e-filing portal. Please submit your response by following the below steps.


Step 1: Login to e-filing portal at


Step 2: Click on “Cash Transactions, 2016” link under “Compliance” section.


Step 3: The details of transactions related to cash deposits during 9th Nov to 30th Dec 2016 will be displayed


Step 4: Submit your online response for each transaction.


  • Click here to refer the “Quick Reference Guide for Online Verification of Cash Deposits”.
  • For detailed “User Guide on Online Verification of Cash Deposits” click here.


Kindly submit your response within 10 days of this email.


Note: Please ignore this mail, if you have already submitted the response.

e-filing Team
Income Tax Department


Mail your requirements to -


Address :


Balakrishna & Co, Chartered Accountant Firm, No 24, Comfort Tower, 10th Cross, Wilson Garden, Bangalore – 560 027


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