ITD - General awareness questions on current affairs

1)   Which new portal has ITD launched in May 2017?

a. Operation Clear Money
b. Operation Clean Money
c. Operation Constant Money
d. Operation Circulation Money
Answer  Explanation 

ANSWER: Operation Clean Money

Explanation:
Income Tax Department (ITD) has initiated Operation Clean Money to investigate tax evaders. As a part of the operation, the government has launched a website on ‘Operation Clean Money’ operation.

The Operation Clean Money’ portal has been designed by the Central Board of Direct Taxes (CBDT). Initial phase of the operation involves identification of around 18 lakh persons who have made large deposits or purchases between 9th November to 30th December 2016, which do not appear to be in line with the tax payer’s profile.

The provision of online verification of these transactions is aimed at reducing the compliance cost for the taxpayers while optimising the resources of the Income Tax department.

The PAN holders can view the information in the portal. The taxpayers would be allowed to submit online explanation without the need to visit the Income Tax Office.

As a reminder, e-mail and SMS will also be sent to the taxpayers for submission of online response on the portal. The IT department will make use of the data analytics to select cases for verification.

After selection of cases, additional information requested would be communicated electronically. On getting the information, the portal will get dynamically updated.

The taxpayers covered under this phase are required to submit their responses within 10 days in order to avoid further notice and enforcement actions under the Income Tax Act. The response provided by the tax payer would be analyzed against available information with the department.

If response found justified, the verification would be closed. The verification will also be closed if the cash deposit has been declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY).

Operation Clean Money: Know More

  • Operation Clean Money was launched immediately after government’s demonetisation drive in order to bring the tax evaders with undeclared incomes under the tax net.
  • The income tax department has so far identified about 1.8 million persons and asked them to explain their deposits, pay tax or disclose past undisclosed income through the Pradhan Mantri Garib Kalyan Yojana.