Ans: The AO may verify if the cash receipts are in line with the normal practices of concerned business as mentioned in the earlier returns of Income after considering the remarks provided by the taxpayer, nature of business and earlier history.Ques: What would be the course of action if it is confirmed that cash deposited was received from un-identifiable person?Ques: What will happen to those who have still not submitted the online response for verification of cash deposits?
During survey, where there is suspicion of back dating or fictitious cash transactions, CCTV recording of the cash counter at relevant banks may also be checked, if necessary.
All the additional documents (including supporting evidence) are required to be submitted online.
In case explanation of source of cash is found justified, the verification will be closed by the AO electronically without any physical interface with the person concerned.
The basis for verification can be income earned during past years and its source, filing of ROI and income shown therein, cash withdrawals made from accounts etc.
2) For persons having business income Ques: A person has verified that the cash deposited is out of receipts exempt from tax.