I-T department goes easy on deposits up to Rs 5L by elderly people

New Delhi: The Income Tax department has decided not to carry out any verification for cash deposits up to Rs 5 lakh made by people above 70 years, post demonetisation. The department has, however, limit the deposits for other individuals at Rs 2.5 lakh.

A senior finance ministry official said that there is no cause for panic and stated, "We are not going after everyone who deposited their holding of the demonetised currency in bank accounts between November 8 and December 30, 2016. Very clear thresholds have been set for tax department to take up deposits for verification and not scrutiny or assessment."

These verification are being done online and any person of up to 70 years of age, who has deposited more than Rs. 2.5 lakh in cash, has to go to I-T department website and explain the source of deposit, stated the FM official.

He further clarified that if the deposits would match with previous income tax returns, the verification will be closed at that stage itself but if a depositor does not verify, or there is suspicion on deposits not matching with known sources of income, the Income Tax department will proceed to further clarifications.

The Finance Ministry has asked those who have not yet registered on the e-filing portal to do so immediately.