IT dept increases security under Prohibition of Benami Property Transactions Act
Central Board of Direct Taxes (CBDT) on Thursday announced that the Income Tax Department has stepped up actions under the Prohibition of Benami Property Transactions Act (the ‘Benami Act’).
The act which came into play from November 1, 2016 has now attached benami property worth over Rs 3,500 crore.
“Due to intensive efforts undertaken by the department, provisional attachment has been made in more than 900 cases of properties under the Act. These include plots of land, flats, shops, jewellery, vehicles, deposits in bank accounts, fixed deposits etc. The value of properties under attachment is more than Rs 3,500 crore including immovable properties of more than Rs 2,900 crore,” the report said.
The Prohibition of Benami Property Transactions Act provided for provisional attachment and subsequent confiscation of benami properties, whether movable or immovable. It also allows for prosecution of the beneficial owner, the benamidar and the abettor to benami transactions, which may result in rigorous imprisonment up to seven years and fine up to 25% of fair market value of the property, the report said.
The IT department has claimed to have set up 24 dedicated Benami Prohibition Units (BPUs) under its Investigation Directorates all over India in May, 2017.
“The department is committed to continue its concerted drive against black money and action against Benami transactions will continue to be intensified,” CBDT said.
“In five cases, the provisional attachments of Benami properties, amounting to more than Rs 150 crore have been confirmed by the Adjudicating Authority. In one such case, it was established that a real estate company had acquired about 50 acres of land, valued at more than Rs.110 crore, using the names of certain persons of no means as benamidars. This was corroborated from the sellers of the land as well as the brokers involved. In another case, post demonetization, two assessees were found depositing demonetized currency into multiple bank accounts in the names of their employees, associates etc. to be ultimately remitted to their bank accounts. The total amount attempted to be remitted to the beneficial owners was about Rs. 39 crore. In yet another case, a cash amount of Rs. 1.11 crore was intercepted from a vehicle with a person who denied the ownership of this cash. Subsequently, no one claimed ownership of this cash and it was held to be benami property by the Adjudicating Authority,” the report added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Tata Motors, Muthoot Finance and 3 more: Axis Direct recommends buying these stocks for 2 weeks; check targets, stop losses
01:52 PM IST