Corporate Updates – 01-02-2017


Income Tax Department has initiated Operation Clean Money. Initial phase of the operation involves 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 in whose case, cash transactions do not appear to be in line with the tax payer’s profile. ITD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources. The information in respect of these cases is being made available in the e-filing window of the PAN holder and the taxpayer will be able to submit online explanation without any need to visit Income Tax office. Email and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal. 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 taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the department and enforcement actions under the Income-tax Act as also other applicable laws.

Department of Trade and Taxes

Department of Trade and Taxes has allowed extension for filing of online return for 3rd Quarter of 2016-17. Thereby, the last date of filing of online/hard copy of third quarter return for the year 2016-17 in form DVAT-16, DVAT-17 and DVAT-48 has been extended to 13/02/2017. However, the tax due shall continue to be paid in the usual manner as per the provisions of Section 3(4) of the Delhi Value Added Tax Act, 2004. The dealers filing the returns through digital signature need not be required to file hard copy of the return/ Form DVAT-56.

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