The Income Tax department has given a signal for strong action against those who undertake Benami transactions. Those who undertake Benami Transactions would be chargeable with Rigorous Imprisonment (RI) of up to 7 years.
In a leading newspaper’s advertisement, the IT department stated:
“Do not enter into a benami transactions”. Black money is a crime against humanity. We urge every conscientious citizen to help the government in eradicating it.
The Income Tax department also stated few salient features of the new Act: “Benamidar (in the person’s name the benami property is belonging), beneficiary (the person who actually paid the consideration for the benami property) and all the other persons who back, induce and assist such benami transactions are prosecutable and may be punishable with Rigorous Imprisonment to the extent of 7 years, are also liable for a fine which can extend up to 25 percent of fair market value of such benami property.”
Income Tax Departments issues warning to Benami Property HoldersIt also added that “any person who furnishes any false or misleading information to the Income Tax Department under the Benami Transaction Act is prosecutable and may face imprisonment for a period of 5 years together with a fine up to 10 percent of the fair market value (FMV) of benami property.”
The authorities made it absolutely clear that the benami property “might be confiscated and attached by the central government” and these aforesaid actions are in addition to the actions under the Income tax law or under any other laws.
The Income Tax Department has registered above 230 such cases and has attached properties worth rupees 55 crores nationwide, since the enactment of the law in the last year.
235 instances and cases have been registered by the Income Tax Department till mid of February 2017 under the said Act.
Show cause notices (SCN) have been issued for attachment of the benami property in 140 cases, where benami properties worth rupees 200 crores are involved.
Till now, 124 cases, benami properties provisionally attached which worth more than rupees 55 crores, reported by PTI.
Such attached properties include bank deposits, flats, and jewelry, agricultural and another land.
After demonetisation movement in the last year, the Income Tax department had carried out advertisements in public and warned people against depositing their old currency of 500 and 1000 (unaccounted) in someone else’s bank account.
Recommended Read- Everything you needed to know about Benami Transactions