The Income Tax Department launched 'Operation Clean Money' to investigate cash deposits made during demonetisation from November 9 to December 30, 2016, sending emails or SMS to approximately 18 lakh individuals for further information. Recipients must respond only online within 10 days, and failure to do so could result in enforcement actions under the Income Tax Act. The process involves logging into the e-filing portal, verifying cash transaction data, and submitting a response based on the accuracy of the cash deposits reported.

1. How to Handle
Income Tax SMS/Email Recd.
Post Demonetisation
www.ecompliancepartner.in February 02, 2017 +91-9711215657

2. Did you get an email or SMS from Income tax department post demonetisation?
Income tax department (ITD) has launched “Operation clean money” in respect of cash deposit
between 9th November 2016 to 30th December 2016 and used data analytics for comparing the
demonetisation data with the information available in ITD database.
In the first batch, around 18 lakh persons have been identified in whose case, cash transactions
do not appear to be in line with the tax payer’s profile and SMS or email has been sent to them
seeking more information.
FAQ
1. Whether the SMS or email is a notice under Income tax Act.
No, SMS or Email is sent by ITD for seeking more information from the person. These can’t
be considered as notice under Income tax Act.
2. What is the prescribed time limit for response?
As per the press release dt. January 31, 2017, the tax payers covered in this phase should
submit their response within 10 days.
3. What is the mode of response?
Only online response is required to be submit.
4. Whether the person is required to visit office of Assessing Officer or any other office of
ITD?
No, there is no need to visit the office of Assessing officer or any other office of ITD.
5. What will happen if reply is not made?
If the response is not made online within the reasonable time ITD can issue any notice
Income tax Act and take enforcement actions as well. Moreover actions can be taken
under other applicable laws along with Income tax Act.
6. Can response once submit be modified?
Yes, the used can modify his response by clicking “Submit” button.
7. Whether the transactions listed under Cash Transactions 2016 are the only transactions
known to ITS?
ITD is getting formation from banks and processing such information with the help of data
analytics. Information on the ITD portal will be dynamic and will update on receipt of new
information, response and data analytics.

3. Summary of actions required

4. Step by step guide for online verification
STAGE 1: VIEWING INFORMATION
Step:1
Login to e-filing portal at https://incometaxindiaefiling.gov.in.
Step:2
Click on “Cash Transactions 2016” link under “Compliance” section.
Step:3
Cash deposits during 9th Nov to 30th Dec 2016 will be displayed as :
 Cash transaction data is only shown in cases where it does not appear to be in line with the taxpayer
profile.
 The information on the online portal will be dynamic and will be updated on receipt of new information,
response and data analytics.
 Here information will be provided about all cash deposit between 09/11/2016 to 30/12/2016 whether
deposited in specified bank notes or new currency notes.
 If the person choose to provide information about any other bank then he need to fill information about
specified bank notes only.

5. STAGE 2: SUBMISSION OF RESPONSE
Step:1
After clicking submit, the user is provided with two options i.e. “The account relates to this
PAN” and “The account does not relate to this PAN”.
If the person choose option “The account does not relate to this PAN” then message “Your
feedback will be sent to the information source for confirmation.” will be displayed. On
clicking the submit button, the success message along with Transaction ID is displayed on the
Screen.
Step:2
If the user selects the response option “The account relates to this PAN” the screen for
capturing details will be displayed to the user.
 If the cash deposit amount displayed under A.4 is not correct, please mention the correct
amount under A.5.
If cash is claimed to be from more than one category (or out of cash in hand), the source of
cash may be assigned under various categories in the following sequence (Adopting other
sequence may result in case being selected for verification based on risk criteria)
a) Cash withdrawn out of bank account (Refer B.3)
b) Cash received from identifiable persons (with PAN) (Refer B.4)
c) Cash received from identifiable persons (without PAN) (Refer B.5)

6. d) Cash received from un-identifiable persons (Refer B.6)
e) Cash out of receipts exempt from tax (Refer B.2)
f) Cash out of earlier income or savings (Refer B.1)
g) Cash Disclosed/To be disclosed under PMGKY (Refer B.7)
 Exempt income like agriculture income etc. but excluding Donations, Gifts etc.
In case cash is claimed to be withdrawn out of bank account, the account wise details are
required to be provided
 The drop down values of “Nature of Transaction” should be entered as per the codes
mentioned below:

7. For any information/clarification feel free to contact:
H2O Consulting (P) Ltd.
E-192, Vishwas Park, Uttam Nagar
New Delhi-110059
E: info@ecompliancepartner.in
M:+91-911215657
Drop down Code to be specified in CSV(case sensitive)
Cash Sales RS
Loan received in Cash RL
Loan repayment in Cash RR
Gift Received in Cash RG
Donation Received in Cash RD
Other Cash Receipt RO
 In case there are multiple entries under B.3 to B.6, facility has been provided for online submission
as well as upload of CSV (Comma Separate Values).
 The sum of all sources of cash deposits (B.1 to B.7) should match with the confirmed cash deposit
amount (A.5) such that balance (refer B.8) is computed as 0.
Step:3
On successful validation, the success message along with Transaction ID is displayed.