22/02/2017 11:06 AM IST | Updated 22/02/2017 11:40 AM IST

Income Tax Officials To Crack Down On Unexplained Cash Deposits Of Over ₹5 Lakh

Loan advances and repayments in cash also need to be verified.

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Income tax officials have been directed to crack down on people who haven't explained cash deposits of over ₹5 lakh following the demonetisation.

The Central Board of Direct Taxes has also directed officers to take action against those who have repaid or extended loans in cash that will now attract a 100 per cent penalty, the Times of Indiareported. This will also apply to loans that have been made to friends.

From an estimated 18 lakh people who made cash deposits over ₹5 lakh, a majority of people are yet to verify their funds.

To ensure people aren't harassed, the verification is to be conducted through an online e-filing portal within five days, said the report. Should the information provided doesn't meet the ealier returns or the financial profile of the individual, tax officials could take further action like scrutinising the accounts in question, and even referring some to the investigation wing.