The Benami Transactions Informants Reward Scheme, 2018, introduced by the CBDT, provides rewards of up to Rs. 1 crore for information about benami properties under the Prohibition of Benami Property Transactions Act, 1988. Eligible informants must submit specific information in Annexure A, including details about the benami property and its owner, to receive a reward. Government servants are excluded from eligibility. Informants must be assigned an “Informant Code” and can appeal if not allotted one. Rewards are granted only if information is provided in the prescribed format. The scheme specifies conditions for interim and final rewards, with interim rewards up to 1% and final rewards up to 5% of the property’s value. Foreign informants can receive rewards through banking channels, while confidentiality is maintained for all informants. Misleading or false information may lead to prosecution. The scheme also outlines procedures for handling group submissions and multiple property reports, as well as limitations on rewards when claims are made under different schemes. The reward process includes a review option for alleged injustices, with final decisions being non-appealable except for procedural reviews.
Q1. What is Benami Transactions Informants Reward Scheme, 2018?
Ans: The Benami Transactions Informants Reward Scheme, 2018 (‘the Scheme’) is a reward scheme introduced by the CBDT for informants giving information about the Benami property actionable under the Prohibition of Benami Property Transactions Act, 1988 (‘PBPT Act’).
A person who satisfies the definition of ‘informant’ under the scheme can get a reward of up to Rs. 1 crore for giving specific information about the benami property. The identity of the Informant shall be kept confidential.
Q2. Who is considered an ‘Informant’ under this scheme?
Ans: ’Informant’ means a person, including an individual or a group of individuals, who has fulfilled all of the following conditions:
a. at any time, given specific information about one or more movable or immovable benami properties of which the fair market value, as defined in the Act, of movable property, and circle rate, as defined in this scheme, of immovable property is more than Rs. 1 crore, in a single Annexure – A form;
b. furnished information in the prescribed form in Annexure – A to the scheme; and
c. received an ‘Informant Code’ from the authority prescribed in the scheme.
Q3. Whether any ‘government servant’ can be an ‘informant’ and is eligible to be rewarded under the scheme?
Ans: No reward shall be granted under this scheme to any government servant who furnishes information or evidence obtained by him in the course of normal duties as a government servant.
A person employed by the following shall be deemed to be a Government Servant for the purpose of this scheme:
a. Central Government;
b. State Government;
c. Union Territory Government;
d. Nationalized bank;
e. Local authority;
f. Public sector undertaking;
g. Corporation, body corporate or establishment, set up or owned by the Central Government or State Government or Union Territory Government.
Q4. What if a person giving such specific information is not allotted an Informant Code?
Ans: If the person giving such information is aggrieved in the matter of giving information and allotment of Informant Code, he may approach the PDIT/DIT (lnv.) concerned, whose decision in the matter shall be final.
Q5. Whether a person will be entitled to a reward if he furnished specific information of benami property in any manner other than through prescribed form in Annexure A?
Ans: A person shall not be entitled to any reward under the scheme if he is not an informant under the scheme, even if such person has furnished specific information of benami property in any other manner, e.g., through letter, e-mail, CD, WhatsApp, SMS, phone, posting in social networking site or publishing letter in a newspaper or any other media. A person shall be entitled to reward only if he furnishes specific information of benami property in the prescribed form in Annexure A
Q6. What is “Specific Information” as per the scheme?
Ans: The information given by the Informant can be treated as specific information under the scheme only if it includes:
a. Verifiable particulars of the benami property;
b. Name and address of the person in whose name the property has been acquired (Benamidar); and
c. Credible basis, including supporting evidence for the information that the property was actually benami property.
Q7. Whom should a person contact if they have specific information as mentioned in the scheme?
Ans: A person who wants to give specific information in expectation of reward may contact the Joint Commissioner of Income Tax/Additional Commissioner of Income Tax (Benami Prohibition) [‘JCIT/Addl. CIT (BP)’] having jurisdiction over the place where the benami property is situated.
If there is more than one benami property located at different places, the person may give information to any JCITs/Addl. CITs (BP) having jurisdiction over any of these properties.
Where the person gives information about benami properties to any other Income Tax authority, such other authority shall forward such information and guide him to the jurisdictional JCIT/Addl. CIT (BP). Where there is more than one BP unit at a place, such a person may be directed to approach the jurisdictional DGIT (Investigation).
Q8. What is the course of action if JCIT/Addl. CIT (BP) considers the information actionable?
Ans: If the JCIT/Addl. CIT (BP) feels that the person has given specific information of benami property, he will give one set of prescribed form as per Annexure-A to such person who shall fill, sign and submit it to the JCIT/Addl. CIT (BP).
Q9. What is the course of action when a foreign person is in possession of information?
Ans: Where a foreign person wants to give information on benami property actionable under the Act, he may contact the Member (Investigation), CBDT, North Block, New Delhi-l l0001 either in person or by post or by communication at email-id [email protected] with a copy to [email protected] for further action. He may take the assistance of Income Tax Overseas Units (ITOU) working in Indian missions in some foreign countries in this regard.
Q10. What is the process if the information is furnished by a group of informants?
Ans: If the information is furnished by a group of persons, the prescribed form, statements, etc., shall be filled and signed by all such persons jointly, and the Informant code will be allotted to each of them separately. The reward payable in such cases, if any, shall be disbursed in equal proportion unless specified otherwise by such persons at the time of furnishing information in the prescribed format.
Q11. Whether a person can furnish details of benami property on multiple occasions?
Ans: A person may give information about more than one benami property either on one or multiple occasions, but in Annexure-A, which shall be filled and signed separately on each occasion. One form may be used for multiple properties only if such properties pertain to either the same Benamidar or the same beneficial owner. However, he will be given only one Informant Code, and his reward will be computed on the basis of entitlement individually for each benami property.
Q12. Whether confidentiality be maintained in the context of the Informant’s identity and information provided by the Informant?
Ans: The identity of the Informant, the information given by him (including all related documents/annexure), or the reward paid to him shall not be disclosed to any person/authority except when expressly required under any law for the time being in force or by order of any court of law. The documents/annexure relating to identity and information shall remain confidential and be dealt with accordingly.
Q13. What are the consequences if an informant furnishes false information?
Ans: If an informant furnishes false information, such an act is considered as an offence, and the person giving false information/evidence/ statement will be liable to be prosecuted for such offence.
Q14. Conditions required to be fulfilled to be eligible for Interim Reward
Ans: An interim reward can be granted on fulfilment of the following conditions:
a. The Informant has given specific information about benami property in Annexure-A and obtained the informant code under the scheme;
b. Provided assistance required, if any, by the Addl./JCIT (BP) or any other investigating officer to whom the JCIT/Addl. CIT (BP) concerned may assign the investigation into the information given by the Informant; and
c. Pursuant to such information, the benami property has actually been provisionally attached under Section 24(4) of the Act.
Q15. Conditions required to be fulfilled to be eligible for Final Reward
Ans: A final reward can be granted on fulfilment of the following conditions:
a. The Informant has given specific information about benami property in Annexure-A and obtained the informant code under the scheme;
b. Provided assistance required, if any, by the Addl./JCIT (BP) or any other investigating officer to whom the JCIT/Addl. CIT (BP) concerned may assign the investigation into the information given by the Informant;
c. The benami property has been confiscated under Section 27 of the Act; and
d. Such confiscation has become final in judicial proceedings after the confiscation order is passed. The confiscation shall be deemed to be final if two years have passed from the date of confiscation and there is no litigation pending against such confiscation.
Q16. What is the quantum of interim reward under this scheme?
Ans: Interim reward up to 1% of the fair market value, as defined in the Act, of movable property, and circle rate, as defined in this scheme, of immovable property, provisionally attached under section 24(4) of the Act may be granted by the competent authority on fulfilment of eligibility conditions under the scheme subject to the maximum ceiling of an amount of interim reward of Rs. 10 lakhs in respect of the information of a single benami property.
Q17. What is the quantum of the Final reward under this scheme?
Ans: Final reward up to 5% of fair market value, as defined in the Act, of movable property, and circle rate, as defined in this scheme, of immovable property confiscated under the Act may be granted by the competent authority on fulfilment of eligibility conditions under the scheme. While granting the final reward, the amount of interim reward paid, if any, shall be reduced from the total final reward granted. However, the maximum amount of total reward (interim and final) in respect of a single benami property shall be limited to Rs. 1 crore.
Q18. What is ‘Circle Rate’?
Ans: “Circle Rate”, in respect of immovable property, means the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of transfer of such immovable property on the date of transaction of acquisition of such property by or for the Benamidar.
Q19. What is the quantum of reward where more than one benami property is involved?
Ans: If more than one benami property is informed in a single Annexure – A form, the reward shall be computed on the basis of entitlement applying the above percentage rates and maximum limits individually for each benami property.
Q20. What is the quantum of reward if the Informant is eligible for a reward under Income Tax Informants Reward Scheme 2018 and Benami Transactions Informants Reward Scheme 2018?
Ans: If the Informant has claimed reward under this Scheme as well as Income Tax Informants Reward Scheme, 2018, based upon substantially the same facts (as was given for claiming reward under this scheme) and if the same is separately found eligible for grant of reward in accordance with this Scheme as well as the Income Tax Informants Reward Scheme, 2018, the total amount of reward under both the schemes taken together shall not exceed the maximum permissible amount under the Income Tax Informants Reward Scheme, 2018, or this Scheme, whichever is higher.
In other words, if an informant is found eligible for a reward under both the schemes for information relating to the PBPT Act and the Income Tax Act, 1961, the total maximum reward under the two Schemes shall be restricted to Rs. 1 crore as is the limit in this scheme and if an informant is found eligible for a reward under both the Schemes for information relating to the PBPT Act and the Black Money (Undisclosed Foreign Income and Assets) Act, 2015, the total maximum reward under the two Schemes shall be restricted to Rs. 5 crores as is the limit in Income Tax Informants Reward Scheme, 2018.
Q21. What is the time limit for the payment of the reward?
Ans: Every endeavour shall be made to grant:
a. interim reward within 4 months of actual provisional attachment of the benami property under Section 24(4) of the Act; and
b. final reward within 6 months of the order of confiscation of the benami property becoming final. The confiscation shall be deemed to be final if two years from the date of confiscation have passed and there is no litigation pending against such confiscation.
Q22. What are the different modes for the payment of rewards if the Informant is a foreign person?
Ans: The reward to an informant who is a foreign person may be paid by regular banking channel as per guidelines issued by the Reserve Bank of India (otherwise than cash), to his bank account in India or abroad, as requested in writing by the Informant, in Indian Rupees or its equivalent US Dollar at the exchange rate prevailing at the time of actual payment of the reward. Commission or charges for payment in US Dollars shall be deducted from the gross reward amount granted.
Q23. Who is considered a Competent Authority to grant rewards?
Ans: The authority competent to grant any reward under the scheme shall be a committee consisting of:
a. DGIT (lnv.) holding jurisdiction over the JCIT/Addl. CIT (BP) concerned who has received the information;
b. PDIT (Inv.)/DIT (Inv.) holding jurisdiction over the JCIT/Addl. CIT (BP) concerned who has received the information;
c. Principal Commissioner of Income Tax nominated by the Principal Chief Commissioner of Income Tax of the area where provisional attachment order or, as the case may be, confiscation order, is passed by the competent authority;
d. The JCIT/Addl. CIT (BP) concerned shall be the Secretary of the committee.
Q24. What are the relevant factors that are considered for granting and determining the quantum of reward?
Ans: The following factors may be considered for the grant and payment of interim or final reward:
a. Fulfilment of conditions mentioned in this scheme;
b. Specific nature, precision, accuracy, usefulness of information, and quality of evidence furnished by the Informant;
c. Extent and nature of assistance rendered by the Informant;
d. Risk and trouble undertaken and the expenses incurred by the Informant in securing and furnishing the information.
Q25. Circumstances in which the Informant is not eligible for any reward
Ans: No reward shall be granted to an informant under certain circumstances, which may include the following:
a. If information is not provided in accordance with the scheme;
b. If the terms and conditions of the scheme are not fulfilled;
c. Where the information given is vague/non-specific and/or of general nature;
d. Where the information given is already available with the Income Tax Department;
e. Where the information is not received directly from the Informant but through any organization other than Income Tax Department;
f. Where additional taxes on the undisclosed income detected are not directly attributable to the information given by the Informant; or
g. Where any incidental or collateral benefit arises to the Government in respect of any other property which is not mentioned in the information furnished by the Informant in Annexure-A. In other words, the entitlement of the Informant shall be restricted to only the property(ies) mentioned in Annexure – A under this Scheme and shall not extend to any other property as the Department may find out by investigation into the information furnished by the Informant.
Q26. Is there any possibility of not taking cognizance of the information furnished by an informant?
Ans: In case it is found that the antecedents of the Informant, the nature of the information furnished by him and his conduct justify not taking cognizance of the information furnished by him, the JCIT/Addl. CIT (BP) may ignore the information furnished by the Informant after recording detailed reasons for doing so.
Q27. What are the provisions with respect to the non-disclosure of information regarding the taxpayer/assessee?
Ans: While maintaining the secrecy of the information and Informant, the information received from the Informant can be used by the Income Tax Department for such purposes as are considered appropriate by the Department. The Informant shall not have any right to receive any feedback regarding action taken or outcome achieved in any case. He may get feedback and/or update only about whether his information has been acted upon and, if yes, whether he is likely to get any reward. Accordingly, Directorates General of Income Tax (Investigation), who are exempt from providing information under Section 24 of the Right to Information Act, 2005 read with Second Schedule thereof, shall not be bound to provide any information about the action taken or outcome achieved except as provided in the said Act.
Q28. Can the Informant file an appeal against the amount of reward?
Ans: The reward under the scheme is an ex-gratia payment which may be granted at the absolute discretion of the competent authority. The decision of the authority shall be final, and it shall not be subject to any litigation, adjudication, and arbitration except review as provided in this scheme.
Q29. Is there any remedy for final reward available to the Informant if the Informant alleges injustice in the decision of the competent authority?
Ans: In case an informant alleges grave injustice in the decision of the competent authority for final reward due to either non-adherence to the Reward Scheme issued by the Board or due to factual incorrectness, he may file a review petition within one month of receipt of the decision, before the DGIT (lnv.). In such a petition, he has to clearly bring out the basis of the alleged grave injustice with specific reference to the provisions of the Reward Scheme, which have not been followed by the reward committee or instances of factual incorrectness.
No cognizance will be taken of a review petition if it is not mentioned as to which provision of the Reward Scheme was not followed or the instances of factual incorrectness. The DGIT (Inv) shall cause such a petition to be placed before a review committee consisting of:
a. Principal CCIT (CCA) of the region where the reward committee was located;
b. A CCIT nominated by the Principal CCIT (CCA); and
c. DGIT (Inv) concerned.
In case there is no CCIT in the region, the Principal CCIT may nominate a Principal CIT for the review committee. JCIT/Addl. CIT (BP) concerned shall be the Secretary of the committee. The review committee shall examine such grievance, take necessary action and communicate the decision to the Informant, preferably within 3 months of the receipt of the petition.
Q30. Will an assignment of the reward by the Informant be recognized?
Ans: If the reward is assigned by the Informant in favour of some other person, the same will not be recognized. The authority competent to grant reward may, however, grant reward to the legal heirs or nominee(s) of an informant who has deceased before receiving the reward. The provisions of the scheme shall apply to the heir as would have applied had the Informant not died. For this purpose, the Informant shall specify nominee(s) in Annexure-A at the time of furnishing the information. If there is more than one legal heir or nominee, the reward amount shall be distributed in equal share unless indicated otherwise in Annexure- A or the right is relinquished by any or more of the legal heirs.
Q31. Is the reward received by the Informant tax-free?
Ans: The reward has not been notified for exemption under Section 10(17A)(ii) of the Income-Tax Act, 1961. So, it is not tax-free.
