Benami Transactions (Prohibition) Amended Act, 2016
I-T started initiating action under the new benami Transactions (Prohibition) Amendment Act, 2016 from November 1, 2016. As per the act benami property includes movable or immovable, tangible or intangible, corporeal or incorporeal property. It empowers provisional attachment and subsequent confiscation of benami properties.
As per the recent news dated on 10.01.2017, Department warned people to “KEEP AWAY” FROM BENAMI TRANSACTIONS, cautioning that violations under the newly enacted law invites criminal prosecution and rigorous imprisonment up to Seven years by putting out its alert in a public advertisement published in leading national dailies, titled “Keep Away from Benami Transactions”.
BENAMIDAR (in whose name benami property is standing), Beneficiary (who actually paid Consideration) and the persons who abet and induce benami transactions are prosecutable and may face rigorous imprisonment up to 7 years besides being liable to pay fine upto 25 per cent of the fair market value of benami property, Also the benami property “may be attached and confiscated by the government” in addition to prosecution under the Income Tax Act of 1961 for tax evasion charges.
Government has dedicated 24 Benami Prohibition Units (BSU) all over India being supervised by Principal Directors of investigation in IT Department. The crackdown of illicit wealth is being spearheaded to ensure any economic misdeeds are immediately identified for the action as per the law.
As per the recent data gathered, The Intensive efforts of tax department have led to the provisional attachment in more than 900 cases of properties including Land, flats, Shops, Jewellery, Vehicles and deposits in Bank Accounts worth more than Rs 3500 crore across the country till date and target is to serve the notices to all the benami property holders by the end of the FY 2017-18.
(JHA JAIN & ASSOCIATES, CA NISHANK JAIN AND CA ANKIT JHA, [email protected])
Disclaimer: The Content of this document are solely for informational purpose. It does not constitute professional advise.