Got an I-T notice on cash deposits? Don't panic and follow this guide

The Reserve Bank of India (RBI), in tandem with public sector and commercial banks, has undertaken data mining on a massive scale to identify how funds have been moved in the country after November 8. The government has come down hard on individuals and businesses operating doctored accounts, having deregistered and shut more than 100,000 companies and penalised more than 300,000 others. The I-T department has also identified over 37,000 shell or paper companies channelling black money through methods such as hawala. As a part of its Operation Clean Money, the I-T department identifies individuals whose income tax return filings are inconsistent with the amount of cash deposits made in their bank accounts during the demonetisation drive. It then sends a notification through SMS or e-mail, and the individual must provide a response on the department’s website for the same.

If you receive such a notice, do not panic or ignore it. First, verify that the PAN (Permanent Account Number) stated on the notice is yours. Since the I-T department issues notices to a specific PAN and not based on your name, there are chances that an erroneous notice may have been sent to you instead of someone else with the same name or birth date as yours. If you have received such a notice, irrespective of whether you have made the transactions or not, you must log into your account to submit a response. Here's how:

• Visit the income tax department website, https://incometaxindiaefiling.gov.in, and log into your e-filing account.

• Click on 'Cash Transactions, 2016' under the 'Compliance' tab. The page will then list all cash deposits made by you between November 9 and December 30, 2016. 

• Before you begin the verification process, make sure you have all pertaining documents such as receipts for cash income, past tax returns, etc. 

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Aaykar Setu: Now solve IT RETURN issues, pay taxes, apply for PAN, via CBDT app

Paying IT RETURN, applying for PAN and seeking redressal of grievances have become easier as the tax department today launched an app allowing taxpayers perform basic functions through their smartphone.

The mobile app will also help people link their 12- digit biometric identifier Aadhaar with Permanent Account Number (PAN) card as well as track the TDS deduction details.

The mobile app 'Aaykar Setu', launched by Finance Minister Arun Jaitley, literally means bridge for taxpayers and will be available in Android phones.

"This is a very important step forward by the CBDT and the principle reason being technology as a very powerful tool becomes an enabler. (With the app) most of the work the assessee can discharge without any external help sitting at home," the minister said.

This is the first mobile app by the CBDT and can be downloaded by giving missed calls to 7306525252.

The app will have a live chat facility named 'Chatbot' from 10 am to 6 pm which will provide solution to queries of taxpayers relating to PAN, TAN, TDS, return filing, refund status and tax payments.

Besides, people can also have a live chat with tax experts and provides address of nearby tax return preparer.

It provides ease of use of all the services related to tax payment including tax payment, tax calculation. Also if a taxpayer has a problem, this app will help in lodging his grievance in the e-Nivaran module of the CBDT.

IT RETURN: Now, pay GST if you earn over Rs 20 lakh per year as rent

IT RETURN - Rental income from residential property has been exempt from GST but any earning over Rs 20 lakh annually from renting or leasing for commercial purposes would attract the levy.

Revenue Secretary Hasmukh Adhia said that if the house property is rent out for shop or office purpose, no Goods and Service Tax (GST) will be levied up to Rs 20 lakh.

"Rental income received from residential house is exempt. But if you have given your unit to commercial enterprise, then it is taxable if you are getting more than Rs 20 lakh as rent," Adhia said at the GST Master Class.

The taxpayer earning more than the exempted threshold will have to register with the GST Network and pay taxes.

GSTN Chief Executive Prakash Kumar said that as many as 69.32 lakh registered excise, service tax and VAT payers have migrated to the GSTN portal. There are over 80 lakh such assessees in the earlier indirect taxation regime.

Out of the 69.32 lakh, as many as 38.51 lakh have completed the entire registration process and registration certicate is being issued to them.

The remaining 30.8 lakh taxpayers are being sent SMS and emails by GSTN so that they complete the registration process by giving the details of the business like main place of business, additional place of business, promoters details.

Besides, over 4.5 lakh new assessees have registered on the GSTN portal since June 25.

Adhia further said that the facility to amend the details of businesses provided to the GSTN portal at the time of registration will open on July 17. Also, registration for GST practioners will open on the same day.

Besides, cancellation of registration can be done online.