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

If you receive such a notice, do not panic or ignore it

 

 

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 IT return 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.

You can then begin the process to file your online response in three simple steps, which are as follows: → Income Tax Efiling ←
Step 1: First, ensure that the transactions listed have been made by you. Even if you have not received any notice from the I-T department, but have deposited cash during demonetisation, it is advisable to log into your e-filing account to check the 'Compliance' section. Based on your assessment of the transactions, select either 'The account relates to this PAN' or 'The account does not relate to this PAN'. After selecting the applicable option, you will be directed to the next step for further verification.

Step 2: Confirm if the amount stated on the page is accurate. In case of a discrepancy in the amount mentioned and the actual amount deposited by you, enter the correct amount, and proceed.

Step 3: After confirming the amount deposited, you need to provide the complete details regarding the source of cash and the category it belongs to, such as cash in hand, payment received, etc....... Read Full Article