LATEST NEWS – The tax department on Friday warned that those who undertake Benami transactions would invite Rigorous Imprisonment (RI) of up to 7 years and such violators would also stand to be charged under the normal I-T Act.
In advertisements issued in leading national dailies on Friday, the Income Tax department stated: “Do not enter into benami transactions” as the Benami Property Transactions Act, 1988, is ‘now in action’ from November 1, 2016.“
“Black money is a crime against humanity. We urge every conscientious citizen to help the government in eradicating it,” it said.
The department also spelled out some salient features of the new Act: “Benamidar (in whose name benami property is standing), beneficiary (who actually paid consideration) and persons who abet and induce benami transactions are prosecutable and may get RI up to 7 years besides being liable to pay fine up to 25 per cent of fair market value of benami property.”
It added that “persons who furnish false information to authorities under the Benami Act are prosecutable and may be imprisoned up to 5 years besides being liable to pay fine up to 10 per cent of fair market value of benami property.”
The department made it clear that the benami property “may be attached and confiscated by the government” and that these actions are in “addition to actions under other laws such as Income Act, 1961”. READ MORE