Following demonetization of specified bank notes on 8th November 2016, the Income Tax Department (ITD) has collected information of cash deposits in bank accounts, including Jan Dhan accounts. Such information has been compared with the profile of the persons based upon the information available in the data base of ITD. Based upon the analysis more than 5100 notices for verification of cash deposits in banks during the period from 9th November, 2016 to 10th January, 2017 including those in dormant and Jan Dhan accounts, have been issued. More than 1,100 search & seizure and survey actions have also been conducted, which led to seizure of valuables of more than ₹ 610 crore including cash of ₹ 513 crore. New currency of more than ₹ 110 crore is part of the cash seizure. The undisclosed income detected in these actions (as on 10th January 2017) was more than ₹ 5,400 crore. Appropriate cases have been referred to Enforcement Directorate and CBI for necessary action.

A number of other measures have also been taken under ‘Operation Clean Money’ initiated by the ITD on 31st January 2017. Such measures include collection of information on cash transactions, collation and analysis of such information, extensive use of information technology and data analytic tools for identification of high risk cases, expeditious verification of suspect cases and enforcement action in appropriate cases, which include searches, surveys, enquiries, assessment of income, levy of taxes, penalties, etc. and filing of prosecution complaints in criminal courts, wherever applicable.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

Cash deposit verification after demonetisation prompts data-driven enforcement and referrals under Operation Clean Money. Following demonetisation, the Income Tax Department collected and analysed cash-deposit information to identify mismatches with taxpayer profiles, issued verification notices for deposits including those in dormant and Jan Dhan accounts, and conducted search, seizure and survey operations. These measures, under Operation Clean Money, use information collection and data analytics to prioritise high-risk cases and enable searches, assessments, enforcement referrals, levy of taxes and penalties, and prosecution filings where applicable.