1. In first crackdown against benami property, I-T dept attaches 42 premises

In first crackdown against benami property, I-T dept attaches 42 premises

With demonetisation drive done an dusted and numerous raids by authorities leading to seizures of thousands of crores in illegal wealth...

By: | Updated: January 31, 2017 5:06 PM
Demonetisation, Narendra Modi, NDA Government, Income-Tax Department, Benami Property The Narendra Modi led NDA government has been targeting black money holders and their properties in order to fulfill the promise the Bharatiya Janata Party (BJP) had made during the run-up to the general elections 2014.(Reuters)

With demonetisation drive done an dusted and numerous raids by authorities leading to seizures of thousands of crores in illegal wealth, the Income-Tax department has launched a new crackdown and this time it is on benami properties – something that many had feared would happen once the worst effects of the note ban have blown over. The Narendra Modi led NDA government has been targeting black money holders and their properties in order to fulfill the promise the Bharatiya Janata Party (BJP) had made during the run-up to the general elections 2014.

Income-Tax dept attached 42 properties during the last few days, issued 87 notices under prohibition of Benami property transaction Act, IT sources revealed. They added that this is the first action of it’s kind in the wake of demonetisation.

The department also revealed that bank deposits worth crores has been confiscated under the newly enforced Benami Transactions Act which attracts a heavy penalty and rigorous jail term of a maximum 7 years.

The i-T dept had carried out public advertisements and had warned people against depositing their unaccounted old currency in someone else’s bank account saying such an act would attract criminal charges under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property, that has been enforced from November 1, 2016.

Officials, after going through a report, have said, that numerous summons under the Benami Transactions Act have been issued and it is in the process of issuing more. The decision, they said, to slap the stringent provisions of the Benami Transactions Act was taken after analysing serious cases where the illegalities were blatant and suspect cash was deposited in either benami accounts or Jan Dhan or dormant accounts.

The crackdown stems from the November 8 note ban order in the wake of which the I-T dept had started an operation to identify suspect bank accounts where huge cash deposits have been. The govt had then warned the public not to misuse the Jan Dhan accounts to launder black money. Those who did, now face the prospect of being prosecuted. Under the Act, the department can confiscate and prosecute both the depositor and the person whose illegal money has “adjusted” in their account.

An official told PTI, “Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as benami transaction under the said Act.

He added, “The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar,” a senior official had explained earlier.

  1. Anil Mehta
    Jan 31, 2017 at 8:26 am
    It is part of reckoned economic policiesTo deal with black money
    Reply
    1. S
      Sanjib
      Jan 31, 2017 at 4:13 am
      Let see what will happen ?
      Reply
      1. S
        suresh devaki
        Jan 31, 2017 at 5:13 am
        Good move, hope it will give good results in future.
        Reply
        1. Pranay Tahiliani
          Jan 31, 2017 at 9:54 am
          we can easily file ITR here at TAX2WIN
          Reply
          1. H
            Hiren
            Jan 31, 2017 at 7:28 am
            Basically this will end up increasing number of pending cases in court because there is not strong rules exist to punish such people.
            Reply
            1. M
              Mohamed
              Jan 31, 2017 at 2:25 am
              Only 42? There should be at least 42 lakh such properties that are attached.
              Reply
              1. H
                Harish
                Jan 30, 2017 at 5:29 pm
                Good opening, good start,
                Reply
                1. K
                  KSRao
                  Jan 30, 2017 at 8:21 pm
                  Dont allow politicians to get away, they are the biggest operators of benami properties.
                  Reply
                  1. M
                    mayavan
                    Jan 30, 2017 at 2:40 pm
                    At last some thing unheard and little known things are happenings in India.Right move in direction.We can see a silverline in the horizon
                    Reply
                    1. R
                      Rahul Ashok
                      Jan 30, 2017 at 3:58 pm
                      Get them to pay huge taxes. We the poor people suffer while these fat pigs gulp down public property
                      Reply
                      1. S
                        sankar
                        Jan 31, 2017 at 12:12 pm
                        Had Supreme Court exhibited it's race against time in bringing the demise of BCCI office in such a short notice, Supreme Court could have at least opened the Sealed covers which are in its custody for almost 5 years at least exposing the names of Indians allegedly holding money in Swiss accounts.
                        Reply
                        1. S
                          Sunil Gautam
                          Jan 31, 2017 at 5:38 am
                          Bhai, 42 lakh 42 x lakh se hee banega. Kya chahte ho, ek din mein 60 saal ka kachda saaf kar dein ? Kuch na karo to dard, kuch karo to dard....
                          Reply
                          1. S
                            Sunil Gautam
                            Jan 31, 2017 at 5:40 am
                            Bhai, cricket mei pahli ball par chhakka lagne par yahi bokte ho kya, ki ek chhakke se kya hoga, 250 run banane hain... Grow up beta..
                            Reply
                            1. V
                              vmk
                              Jan 31, 2017 at 7:15 am
                              the begining is good, speed and scale are two things that are needed in this, never spare any one be it politicians , professionals like charted accountants (who teach methods to cirvent law), doctors who have large amounts, top lawyers etc. make aadhar mandatory for any transaction above 10k, link pan with aadhar, use hadop and track transaction, meaning with in 5 working days of doing a high value transaction with out valid white income the people behing the transaction both seller and buyer should be booked. this is what honest hard working law abiding indians want !!!!!!!!!
                              Reply
                              1. V
                                V.V.Chandrasekaran
                                Jan 31, 2017 at 5:22 am
                                The government never does anything seriously could be guaged by the fact it did nothing to get back the money in foreign banks as it promised or never disclosed the NPAs in the banks or it has not even responded to the fact that 51 persons hold 78 percent of the National wealth.
                                Reply
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