If cash deposit is declared under the tax amnesty scheme, PMGKY, the verification will be closed.in", the user guide said. To help taxpayers, it has now brought out a user guide.

The Tax Department will select some cases for verification based on risk criteria. If the account belongs to the PAN holder but the value of deposit is incorrect, a correct entry can be submitted online..The taxpayer needs to confirm that the bank account relates to his PAN.The response of taxpayer will be assessed against available information and in case explanation of source of cash is found to be justified, the verification will be closed without any need to visit Income Tax office.

With a view to avoiding undue harassment, it has now enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources."The details of transactions related to cash deposits during 9th November pvc bi-folding door factory to 30th December 2016 will be displayed," it said."If receipts exempt from tax are not in line with the taxpayer profile or other available information, the case may be selected for verification based on risk criteria," the user guide said."If the case is selected for verification, request for additional information and its response will also be communicated digitally (either by e-mail or SMS)," the guide said. If this information is not in line with the taxpayer profile or other available information, the case may be selected for verification based on risk criteria. In case the cash is claimed to be out of receipts exempt from tax (agricultural income etc but excluding cases of gift and donation), further details can be provided under remarks.Details should also be mentioned if the cash is received from other persons in the form of cash sales, loan, gift or donations.The website also provides for the taxpayer to explain the source of cash deposit digitally without visiting the income tax office, it said.If cash is claimed to be out of earlier income or savings, further details can be provided under remarks.

The department is using data analytics for comparison of deposits made after the November 8 decision to scrap high-value banknotes with information in its database to identify taxpayers whose cash transactions do not appear to be in line with the tax-paying profile.

As the Income tax department uses Big Data to catch evaders, it is asking taxpayers to verify online the deposits they made in their accounts post demonetisation and respond to queries of any mismatch. In case the account does not relate to the PAN, a suitable option can be selected and information will go to the tax department. The user guide says the taxpayer is required to give details if cash is claimed to be withdrawn from the bank account.The cash deposited in an assessees account can be verified using the link Cash Transactions 2016 under compliance section of the website.