black money

Remembering Demonetisation on its Fourth Birth Anniversary!!!

Income Tax - The primary reason for bringing out the Direct Tax Vivad Se Vishwaas Scheme 2020, as asserted by the learned Revenue Secretary is to ensure amicable resolution of disputes arising out of OCM/Demonetisation Cases. The Income-tax department has launched an aggressive outreach drive, wherein, a large number of jewellers and real-estate de...

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Beware‼ Penalty on cash receipt of Rs. 2 Lakhs or more

Income Tax - Krishna, from 1st April 2017, for accepting cash people have become very much conservative. Please tell me what precautions anyone should take while accepting cash?...

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Analysis of Issues Involved in Retrospective Applicability of Benami Law

Income Tax - The retrospective applicability of Benami law has been a subject matter of controversy, particularly after the amendments introduced in year 2016. In this article, an attempt is being made to identify and analyse various issues involved, and discuss the present judicial stand on such issues pending final verdict by Hon’ble Supreme Court...

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Tax @ 82.50% even if you received amount via proper banking channels

Income Tax - Yes, in certain case even if assessee received money through proper banking channels still it may attract tax @ 82.50% if assessee could not explain its source, identity and creditworthiness etc of the lender/giver of the amount to the satisfaction of Assessing Officer...

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Black Money – A Parallel Economy

Income Tax - Black money is a major challenge for any economy, where high net worth persons, disproportionate their assets to save themselves from the high taxation system. But what is exactly black money, how it is generated and why government find it difficult to catch such arrangements? Let’s dive deeper into such issues and see for ourselves....

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No proposal to stop circulation of Rs 2,000 notes

Income Tax - An analysis of the search cases, conducted by Income Tax Department (ITD), involving cash seizures of more than Rs 5 crores in the last three Financial Years reveals that there is a declining trend visible in the seizure of unaccounted cash in denomination of Rs 2,000 notes....

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Black money of Rs. 4 crore seized since declaration of Maharashtra Elections

Income Tax - Four crore rupees worth of black money seized since declaration of Maharashtra Assembly Elections: DGIT (Investigation). DG of Income Tax (Investigation) briefs the media on steps taken by the Income Tax Department to curb use of black money and cash in elections...

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Cabinet approves Banning of Unregulated Deposit Schemes Bill, 2019

Income Tax - Cabinet approves the Banning of Unregulated Deposit Schemes Bill, 201, Bill to be introduced in ensuing session of Parliament The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the banning of Unregulated Deposit Schemes Bill, 2019.  It will replace the banning of Unregulated Deposit Schemes Ordinance, 2019. The b...

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Status of Unaccounted Income/Wealth Inside & Outside Country

Income Tax - : The illegal economy consists of the income produced by those economic activities pursued in violation of legal statutes defining the scope of legitimate forms of commerce. Participants of illegal economy engage in the production and distribution of prohibited goods (drugs, for example) and services (prostitution, counterfeit currency, a...

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Clean Transactions, Cleaner Economy, Go Cashless, Go Clean

Income Tax - DON’T √ Accept cash of Rs.  2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. √ Receive or repay Rs.  20,000 or more in cash for transfer of Immovable Property. √ Pay more than Rs.  10,000 in cash relating to […]...

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Coercive measures cannot be taken against taxpayer in case he challenges Black Money Act

Anila Rasiklal Mehta Vs Union of India (Bombay High Court) - Since assessee had not disclosed any black money or asset in the income tax proceedings going against him rather he had denied the same, therefore, while respondents may proceed pursuant to the impugned notices dated December 20, 2017 to assessee under Section 10(1) of the Black Money Act calling up...

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Benami Law- Amended Provision of 2016 has no relevance without provisions of Act of 1988

Tulsiram Vs ACIT (Benami Prohibition) (Chhattisgarh High Court) - Tulsiram Vs ACIT (Benami Prohibition) (Chhattisgarh High Court) To decide the core issue whether the amended Benami Transactions (Prohibition) Amendment Act, 2016 can be made applicable for initiating proceedings against the petitioner in respect of the properties which were purchased or acquired pr...

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Adjudicating authority obliged to examine stand of alleged Benamindar: HC

Kailash Assudani Vs CIT (Madhya Pradesh High court) - Kailash Assudani Vs CIT (Madhya Pradesh High court) A plain reading of Sub-section (3) of Section 26 of Prohibition of Benami Property Transaction Act, 1988 makes it clear that the adjudicating authority is obliged to examine the stand of alleged Benamindar in reply to the show cause notice. He is f...

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Adjudicating Authority only can decide on Benami nature of property

Kailash Assudani Vs CIT (Madhya Pradesh High Court) - Kailash Assudani Vs CIT (Madhya Pradesh High Court) High Court held that It is the Adjudicating Authority who is to decide the question of Benami nature of the property. The proceedings under Section 24 of the Act contemplates the issuance of show cause notice as to why the property specified in the...

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Statute cannot have any retrospectivity unless expressly provided therein

Ganpati Dealcom Pvt. Ltd. Vs Union of India & Anr. (Calcutta High Court) - Ganpati Dealcom Pvt. Ltd. Vs Union of India & Anr. (Calcutta High Court) By an amendment an existing Act is supplemented by new provisions adding to or subtracting from it. It is usual that parts of the existing Act are retained. Say for example, there is a provision in the existing Act for pena...

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Banning of Unregulated Deposit Schemes Rules, 2020

Notification No. S.O. 663 (E) - (12/02/2020) - (1) These rules may be called the Banning of Unregulated Deposit Schemes Rules, 2020. (2) These rules shall come into force on the date of their publication in the Official Gazette....

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Share secret info about overseas black money with ED, CBI only with permission: CBDT to I-T Officials

F.No. 500/163/2017/FT&TR-III - (18/09/2019) - India's sovereign obligation to keep the information obtained through the EOI process of tax treaties with the other jurisdictions confidential. Any disclosure of the information received under tax treaties with unauthorized persons, either intentionally or by accident, is a serious matter. The fiel...

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Check list for Cash deposited during demonetisation

F.No.225/145/2019-ITA-II - (09/08/2019) - Board has earlier issued above referred SOPs/Instruction/Internal Guidance Note regarding handling of cases related to demonetisation. In continuation of the same, a Verification Checklist-cash deposits is enclosed herewith for providing assistance to AOs for verification of cash deposits and framin...

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Banning of Unregulated Deposit Schemes Act, 2019

NO. 21 OF 2019 - (31/07/2019) - THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019- NO. 21 OF 2019- An Act to provide for a comprehensive mechanism to ban the unregulated deposit schemes, other than deposits taken in the ordinary course of business, and to protect the interest of depositors and for matters connected therewith or...

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Banning of Unregulated Deposit Schemes Bill, 2019 Passed by Lok Sabha

Bill No. 182-C of 2019 - (24/07/2019) - AS PASSED BY LOK SABHA ON 24.07.2019 Bill No. 182-C of 2019 THE BANNING OF UNREGULATED DEPOSIT SCHEMES BILL, 2019 —————— ARRANGEMENT OF CLAUSES —————— CHAPTER I PRELIMINARY CLAUSES 1. Short title, extent and commencement. 2. Defination CHAPTER II BANNING OF UNREGULATED DEPOSI...

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Recent Posts in "black money"

PPT on Benami Transactions

Benami Transactions One should not enter into any benami transaction as its consequences are severe and unescapable. Please find attached herewith insights on the Prohibition of Benami Property Transactions Act, 1988. Benami property means any property which is the subject matter of a benami transaction and also includes the proceeds f...

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Posted Under: Income Tax |

Remembering Demonetisation on its Fourth Birth Anniversary!!!

The primary reason for bringing out the Direct Tax Vivad Se Vishwaas Scheme 2020, as asserted by the learned Revenue Secretary is to ensure amicable resolution of disputes arising out of OCM/Demonetisation Cases. The Income-tax department has launched an aggressive outreach drive, wherein, a large number of jewellers and real-estate de...

Read More
Posted Under: Income Tax |

Beware‼ Penalty on cash receipt of Rs. 2 Lakhs or more

Krishna, from 1st April 2017, for accepting cash people have become very much conservative. Please tell me what precautions anyone should take while accepting cash?...

Read More
Posted Under: Income Tax | ,

Analysis of Issues Involved in Retrospective Applicability of Benami Law

The retrospective applicability of Benami law has been a subject matter of controversy, particularly after the amendments introduced in year 2016. In this article, an attempt is being made to identify and analyse various issues involved, and discuss the present judicial stand on such issues pending final verdict by Hon’ble Supreme Court...

Read More
Posted Under: Income Tax |

Tax @ 82.50% even if you received amount via proper banking channels

Yes, in certain case even if assessee received money through proper banking channels still it may attract tax @ 82.50% if assessee could not explain its source, identity and creditworthiness etc of the lender/giver of the amount to the satisfaction of Assessing Officer...

Read More
Posted Under: Income Tax | ,

Black Money – A Parallel Economy

Black money is a major challenge for any economy, where high net worth persons, disproportionate their assets to save themselves from the high taxation system. But what is exactly black money, how it is generated and why government find it difficult to catch such arrangements? Let’s dive deeper into such issues and see for ourselves....

Read More
Posted Under: Income Tax |

Benami Transactions – Meaning and Consequences

Benami transaction means; a transaction or an arrangement, where the property is transferred to or held by a person, and consideration for such property has been provided or paid by another person....

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Posted Under: Income Tax | ,

Challenges under Black Money Act, 2015

Challenges under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 1. Introduction 1.1 The problem of black economy is deep rooted in almost all high tax jurisdictions and has become an issue of discussion at almost all global forums. All the countries have felt the need of reducing the generation [&helli...

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Posted Under: Income Tax |

Benami Transactions (Prohibition) Amendment Act, 2016- Brief Analysis

The Benami Transactions (Prohibition) Act, 1988 came into force on 19th day of May, 1988. It extends to the whole of India except the State of Jammu and Kashmir. The act was only in paper and was not implemented for the reason for which it was enacted. And due to operational difficulties, non-formation of rules and relation, the Act could...

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Posted Under: Income Tax |

Coercive measures cannot be taken against taxpayer in case he challenges Black Money Act

Anila Rasiklal Mehta Vs Union of India (Bombay High Court)

Since assessee had not disclosed any black money or asset in the income tax proceedings going against him rather he had denied the same, therefore, while respondents may proceed pursuant to the impugned notices dated December 20, 2017 to assessee under Section 10(1) of the Black Money Act calling upon them to produce the details sought fo...

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Treatment of Cash Sales as Unexplained Cash Credit | Section 68

Is addition u/s 68 of the Income Tax Act justified in case of Cash Sale duly credited in P & L Account and offered for taxation? During the Demonetization period (i.e. 09/11/2016 to 31/12/2016), there has been a huge deposition of cash in old demonetized currency (or SBN) notes in various Bank Account. It was […]...

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Posted Under: Income Tax |

5 Ways People Use to Convert Black Money into White Money

The Article no ways encourage taxpayers to use any of the below methods. The Article is just to let people know about what others are doing to convert their Black Monet into white money currently in India. In addition to those mentioned below there are many other methods which people use to convert their black money into white money....

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Posted Under: Income Tax |

Benami Property- Simplified Meaning

As the name indicates Benami property means a property without a name. In such kind of a transaction, the person who pays for the property does not buy it under his/her own name and motive behind such a transactions of this nature is to evade payment of tax....

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Posted Under: Income Tax |

Lovers of Money and tax non-compliance society

The love towards money can lead to problems like demonetarization of currency etc which can further lead to more tax evaders in our society....

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Posted Under: Income Tax |

Legality of accepting Specified Bank Notes post Demonetisation

Articles explains Whether accepting Specified Bank Notes (SBNs) post Demonetisation is illegal or not from Legal and Income Tax Perspective. The Government of India issued a historic notification in The Gazette of India vide Notification No. 2652 dated 8th November 2016 stating – “the Central Government hereby declares that the sp...

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Posted Under: Income Tax | ,

Banning of Unregulated Deposit Schemes Rules, 2020

Notification No. S.O. 663 (E) (12/02/2020)

(1) These rules may be called the Banning of Unregulated Deposit Schemes Rules, 2020. (2) These rules shall come into force on the date of their publication in the Official Gazette....

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Updated list of Transactions in which PAN is to be quoted

Government mandated Quoting of PAN for cash deposit with Bank and Post Offices if it (i) exceeds Rs. 50000 during any one day; or (ii) aggregates to more than Rs. 250000 during the period 09th November, 2016 to 30th December, 2016 ...

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Posted Under: Income Tax |

Benami Law, 2016

Benami Property: Any property which is the subject matter of a benami transaction and also includes the proceeds from such property. Benamidar: A person or a fictitious person, as the case may be, in whose name the benami property is transferred or held and includes a person who lends his name....

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Posted Under: Income Tax |

Analysis of Income Tax Assessment of demonetisation cases

In its ongoing Operation Clean Money drive (OCM), Various cases were selected for scrutiny assessment for AY 2017-18 where large amount of CASH was deposited during demonetisation period i.e. 9th November 2016 to 31st December 2016. It is observed that while passing order for scrutiny assessment for cash deposited during demonetisation pe...

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Posted Under: Income Tax |

Money Laundering – Practical Cases in India

What is Money Laundering? Money laundering simply means conversion of black money (DirtyMoney) into white money (Clean Money) where the black money may not become white legally but appear to have become so. The process of Money Laundering is also known as Jama Kharchi in India. Some of the prevalent practical methods are discussed here. [...

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Posted Under: Income Tax |

Taxation of Deposits Made With Banks in SBNs

The Income Tax Returns for the Assessment Year 2017-18 were selected for scrutiny via e-proceedings for those Assessees, who have deposited more than Rs. 2 Lakhs in cash in Banks after 8th November 2016, being the date on which Demonetization was announced by our honourable Prime Minister of India. Cash Books, Sales Invoices, Copies of [&...

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Posted Under: Income Tax |

What is Benami Transactions and Its Impact on Common Man

Where a property held by a person (Benamidar) and consideration has been paid by another person (Benefiacial owner) & The property is held for the immediate or future benefit, directly or indirectly for the person who has paid the consideration....

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Posted Under: Income Tax |

Benami Law- Amended Provision of 2016 has no relevance without provisions of Act of 1988

Tulsiram Vs ACIT (Benami Prohibition) (Chhattisgarh High Court)

Tulsiram Vs ACIT (Benami Prohibition) (Chhattisgarh High Court) To decide the core issue whether the amended Benami Transactions (Prohibition) Amendment Act, 2016 can be made applicable for initiating proceedings against the petitioner in respect of the properties which were purchased or acquired prior to 01.11.2016, it would be necessary...

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Adjudicating authority obliged to examine stand of alleged Benamindar: HC

Kailash Assudani Vs CIT (Madhya Pradesh High court)

Kailash Assudani Vs CIT (Madhya Pradesh High court) A plain reading of Sub-section (3) of Section 26 of Prohibition of Benami Property Transaction Act, 1988 makes it clear that the adjudicating authority is obliged to examine the stand of alleged Benamindar in reply to the show cause notice. He is further obliged to make further […...

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Adjudicating Authority only can decide on Benami nature of property

Kailash Assudani Vs CIT (Madhya Pradesh High Court)

Kailash Assudani Vs CIT (Madhya Pradesh High Court) High Court held that It is the Adjudicating Authority who is to decide the question of Benami nature of the property. The proceedings under Section 24 of the Act contemplates the issuance of show cause notice as to why the property specified in the notice should not […]...

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Retrospective Operation of Prohibition of Benami Act

Note on Retrospective Operation Of Benami Transactions (Prohibition) Act, 1988: Section 1(3) provides that ‘the provisions of section 3, 5 and 8 shall come into force at once (5th September 1988) and the remaining provision of this Act shall be deemed to leave come into force on the 19th day of May,1988. The decision of […]...

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Posted Under: Income Tax |

Statute cannot have any retrospectivity unless expressly provided therein

Ganpati Dealcom Pvt. Ltd. Vs Union of India & Anr. (Calcutta High Court)

Ganpati Dealcom Pvt. Ltd. Vs Union of India & Anr. (Calcutta High Court) By an amendment an existing Act is supplemented by new provisions adding to or subtracting from it. It is usual that parts of the existing Act are retained. Say for example, there is a provision in the existing Act for penalty in […]...

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Assessment of Cash Deposits in OCM Cases

A large number of assessments pertaining to cash deposited in banks during demonetization period are pending. The article analysis relevant sections of I.T. Act as well as various legal issues to assist assessing officers in passing error free sustainable assessment orders....

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Posted Under: Income Tax |

Quo Vadis-Retrospective or Prospective

The invoking by Assessing Officers of the recently promulgated Black Money Act has its first brushes with the Courts of Law with the Hon’ble Delhi High Court and later on The Apex Court rendering almost diametrically opposite judgements. The author attempts a critical analysis of the issue and the various facets of the judgements....

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Posted Under: Income Tax |

No proposal to stop circulation of Rs 2,000 notes

An analysis of the search cases, conducted by Income Tax Department (ITD), involving cash seizures of more than Rs 5 crores in the last three Financial Years reveals that there is a declining trend visible in the seizure of unaccounted cash in denomination of Rs 2,000 notes....

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Posted Under: Income Tax |

SC set aside Delhi HC order restraining I-T dept from taking action Gautam Khaitan

Union of India and Ors. Vs Gautam Khaitan (Supreme Court)

Union of India and Ors. Vs Gautam Khaitan (Supreme Court) Scheme of the Black Money Act is to provide stringent measures for curbing the menace of black money. Various offences have been defined and stringent punishments have also been provided. However, the scheme of the Black Money Act also provided one time opportunity to make [&hellip...

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Black money of Rs. 4 crore seized since declaration of Maharashtra Elections

Four crore rupees worth of black money seized since declaration of Maharashtra Assembly Elections: DGIT (Investigation). DG of Income Tax (Investigation) briefs the media on steps taken by the Income Tax Department to curb use of black money and cash in elections...

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Posted Under: Income Tax |

Keep Away From Benami Transactions

‘Benaml’ means ‘no name’ or ‘without name’. Benami properties are those that ore held by an owner through proxies. The property is purchased in the name of or held In the name of a person who has neither paid for it nor actually enjoys it it may even be held in the name of a […]...

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Posted Under: Income Tax |

Share secret info about overseas black money with ED, CBI only with permission: CBDT to I-T Officials

F.No. 500/163/2017/FT&TR-III (18/09/2019)

India's sovereign obligation to keep the information obtained through the EOI process of tax treaties with the other jurisdictions confidential. Any disclosure of the information received under tax treaties with unauthorized persons, either intentionally or by accident, is a serious matter. The field authorities are, therefore, required t...

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Insight Into Benami Transactions (Prohibition) Amendment Act, 2016

A. Background: Corruption has been a social evil which has been bothering the world at large in various degrees. India has also not been spread by the sigma of corruption. After Independence the euphoria that had been generated in the fight against the British, gradually decreased and the ability to wield power at all costs […]...

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Posted Under: Income Tax |

Check list for Cash deposited during demonetisation

F.No.225/145/2019-ITA-II (09/08/2019)

Board has earlier issued above referred SOPs/Instruction/Internal Guidance Note regarding handling of cases related to demonetisation. In continuation of the same, a Verification Checklist-cash deposits is enclosed herewith for providing assistance to AOs for verification of cash deposits and framing of assessment in demonetisation relate...

Read More

Banning of Unregulated Deposit Schemes Act, 2019

NO. 21 OF 2019 (31/07/2019)

THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019- NO. 21 OF 2019- An Act to provide for a comprehensive mechanism to ban the unregulated deposit schemes, other than deposits taken in the ordinary course of business, and to protect the interest of depositors and for matters connected therewith or incidental thereto....

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Practical Aspects on Completion of Assessments regarding Substantial Cash Deposits made during demonetization

Practical Aspects on Completion of Assessments regarding Substantial Cash Deposits made during demonetization We all remember the date 08 November 2016 when our Hon’ble Prime Minister Shri Narendra Modi took huge step and demonetized the specified bank notes (SBN) i.e. Rs.500 and Rs.1000 currency notes. This was the step taken to clean ...

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Posted Under: Income Tax |

Banning of Unregulated Deposit Schemes Bill, 2019 Passed by Lok Sabha

Bill No. 182-C of 2019 (24/07/2019)

AS PASSED BY LOK SABHA ON 24.07.2019 Bill No. 182-C of 2019 THE BANNING OF UNREGULATED DEPOSIT SCHEMES BILL, 2019 —————— ARRANGEMENT OF CLAUSES —————— CHAPTER I PRELIMINARY CLAUSES 1. Short title, extent and commencement. 2. Defination CHAPTER II BANNING OF UNREGULATED DEPOSIT SCHEMES 3. Banning of Unregulated Depo...

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Landmark Judgment: Benami Amendment Act, 2016 not applicable from retrospective effect: HC

Niharika Jain W/o Shri Andesh Jain Vs Union of India (Rajasthan High Court)

Court has no hesitation to hold that the Benami Amendment Act, 2016, amending the Principal Benami Act, 1988, enacted w.e.f. 1st November, 2016, i.e. the date determined by the Central Government in its wisdom for its enforcement; cannot have retrospective effect....

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Refund of Tax & Penalty paid under Income Declaration Scheme, 2016

The existing provisions of section 187 of the Finance Act, 2016 provide, inter alia, that the tax, surcharge and penalty in respect of the undisclosed income, declared under the Income Declaration Scheme, 2016 (the Scheme) shall be paid on or before a notified due date. In order to address genuine concern of the declarants, it […]...

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Posted Under: Income Tax |

Rationalisation of Provisions of Black Money Act

Rationalisation of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 The existing provisions of section 2 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the BM Act) provide inter alia that the “assessee” means a person who is resident in India within [&...

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Posted Under: Income Tax |

Cabinet approves Banning of Unregulated Deposit Schemes Bill, 2019

Cabinet approves the Banning of Unregulated Deposit Schemes Bill, 201, Bill to be introduced in ensuing session of Parliament The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the banning of Unregulated Deposit Schemes Bill, 2019.  It will replace the banning of Unregulated Deposit Schemes Ordinance, 2019. The b...

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Posted Under: Income Tax |

Amendment in black money Act- A nightmare for few

The budget 2019 was announced on 5th July 2019 and finally the wait was over for various tax payers who had lot of expectations to get some tax relief after Modi 2.0 came into action. Where this budget proved to be favorable for corporates and start-ups while in other hand it hit the upper rich […]...

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Posted Under: Income Tax |

Expectations from Budget 2019 for corporate restructuring

While the Interim Budget did not have an expanded section for tax proposals, there are increasing expectations from this full Budget. As the industry eagerly awaits Union Budget 2019, we list down expectations, which are imperative from business restructuring perspective:...

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Posted Under: Income Tax |

Status of Unaccounted Income/Wealth Inside & Outside Country

: The illegal economy consists of the income produced by those economic activities pursued in violation of legal statutes defining the scope of legitimate forms of commerce. Participants of illegal economy engage in the production and distribution of prohibited goods (drugs, for example) and services (prostitution, counterfeit currency, a...

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Posted Under: Income Tax |

Onus to prove that transaction were benami rests on plaintiff: SC

Mangathai Ammal (Died) through LRs Vs Rajeswari & Others (Supreme Court of India)

Mangathai Ammal (Died) through LRs Vs Rajeswari & Others (Supreme Court) In the case of Jaydayal Poddar it is held that the burden of proving that a particular sale is benami and the apparent purchaser is not the real owner, always rests on the person asserting it to be sold. In P. Leelavathi it is […]...

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Delhi HC restrains I-T dept from taking action Gautam Khaitan

Gautam Khaitan Vs Union of India & Ors (Delhi High Court)

Government cannot exercise powers under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, prior to statute itself coming into force....

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Benami Transaction – Prohibition of Benami Transactions Act, 1988

BENAMI TRANSACTIONS”, THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 Preamble; An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. “BENAMI” the word is combination of a Persian Words, as “be” means without and “nam” means n...

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Posted Under: Income Tax |

After amendments Onus of proving a benami transaction rests entirely on owner/ benamidar

Shri Akashdeep Vs Manpreet Estates LLP (Appellate Tribunal For PBPT Act)

Shri Akashdeep Vs Manpreet Estates LLP (Appellate Tribunal For PBPT Act) It is correct that after amendment in Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) , the onus of proving a benami transaction rests entirely on the shoulders of the respondents. Before amendment, the burden of proof was on the prosecution to prove...

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Posted Under: Income Tax |

Financial assistance for property purchase cannot be sole factor to hold transaction as benami

Smt. P. Leelavathi (D) by LRs Vs V. Shankarnarayana Rao (D) by LRs (Supreme Court of India)

Properties were purchased by the defendant with some financial assistance from his father, however, the same cannot be sole determinative factor to hold the transaction as benami in nature.The plaintiff has miserably failed to establish and prove the intention of the father to purchase properties for and on behalf of the family, which wer...

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Benami – Masking of the Real Beneficiary

1. Introduction and Objectives of Benami Law Benami Transaction (Prohibition) Amendment Act, 2016 came into force w.e.f 01-Nov-2016. This Act was amended to curb black money transactions to ensure that all transactions are conducted in the name of the actual owner and needs to be paid from his accounted sources. The amendment in benami la...

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Posted Under: Income Tax |

EC slams CBDT for ‘Insolent’ Counter Advisory over I-T Raids

No. 76/Instructions/2019 (10/04/2019)

The Election Commission of India expresses its deep sense of anguish about the casual and trivial manner in which the advisory to be absolutely neutral, impartial and non, discriminatory has been responded to by Department of Revenue, Ministry of Finance vide letter F. No. A.50050/15/2019-Ad. I dated 08.04.19....

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Cash transaction that Income Tax department frowns upon!

In a bid to implement the government’s mission to make India a cashless or less cash country and weed out corruption, the Income Tax Department has again warned people to refrain from large cash transactions, contravention of which may result in the levy of penalty or disallowance of tax deductions. Following are the five transactions [...

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Cases of substantial cash deposit during demonetisation period- Reg.

F. No. DGIT(S)-ADG(5)-2/Insight Instructions/292/2018-19 (15/03/2019)

Functionality for viewing information related to Cases of substantial cash deposit during the demonetisation period in which notice under section 142(1) of the I. T. Act has remained non-complied...

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Prosecution proceedings justified on failure to disclose foreign bank accounts under Black Money and Imposition of Tax Act, 2015

Shrivardhan Mohta Vs Union of India (Calcutta High Court)

Where assessee was given an opportunity to make the disclosure with regard to foreign bank accounts and the amount lying thereat however assessee failed to avail the  opportunity to make disclosure with regard thereto while submitting his return in the proceedings under search and seizure and also before Settlement Commission, the author...

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Steps Taken for Removal of Shell Companies from Indian Economic System

The Government has launched a sustained campaign in the last 4 years against black money and has taken several bold steps including constitution of the ‘Special Investigation Team on Black Money’, enactment of the ‘The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015’, Income Declaration Scheme, ...

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Posted Under: Income Tax |

Complete Assessment of case of substantial cash deposit during demonetisation by 30.06.2019

No. 225/363/2017-ITA.II (05/03/2019)

SOP for handling of cases related to substantial cash deposit during the demonetisation period in which notice under section 142(1) of the Income-tax Act, 1961 has not been complied-regd.-...

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आपको कितने समय तक सुरक्षित रखना चाहिए आयकर से जुड़े दस्तावेज?

विदेशी संपत्तियों से आमदनी होने पर इनकम टैक्स रिटर्न से जुड़े दस्तावेजों को ज्यादा समय तक रखना चाहिए. क्या आप हर साल नियमित रूप से...

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Posted Under: Income Tax |

Clean Transactions, Cleaner Economy, Go Cashless, Go Clean

DON’T √ Accept cash of Rs.  2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. √ Receive or repay Rs.  20,000 or more in cash for transfer of Immovable Property. √ Pay more than Rs.  10,000 in cash relating to […]...

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Posted Under: Income Tax |

Banning of Unregulated Deposit Schemes Ordinance, 2019: Brief Analysis

In a bid to save credulous investors from ponzi schemes, the Central government has banned unregulated deposit schemes, a move that may help tackling the menace of illicit deposit-taking activities. Pursuant to Banning of Unregulated Deposit Schemes Ordinance, 2019 now any Individual or group of individuals cannot take any deposit or loa...

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Posted Under: Income Tax |

FAQ on Banning of Unregulated Deposit Schemes Ordinance, 2019

Q1 What is  Banning of Unregulated Deposit Schemes Ordinance, 2019 Answer- The Banning of Unregulated Deposit Schemes Ordinance, 2019 has been promulgated to have a central legislation to tackle the menace of illicit deposits taking activities in the country. Presently, non-banking entities are allowed to raise deposits from the public u...

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Posted Under: Income Tax |

Banning of Unregulated Deposit Schemes Ordinance, 2019: Detailed Analysis

Banning of Unregulated Deposit Schemes Ordinance, 2019 provide for a comprehensive mechanism to ban the Unregulated Deposit Schemes and to protect the interest of depositors and for matters connected therewith or incidental thereto. (For example schemes like Sharda Chit Fund and  Rose Vally Scam of West Bengal which has cheated 17 Lakhs ...

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Posted Under: Income Tax |

Menace of illicit deposit schemes cracked down

And the day has come when the risk to remain tight in a BUDS has become more painful……. Banning of Unregulated Deposit Scheme Ordinance, 2019 (BUDS) with effect from 21.02.2019 Menace of illicit deposit schemes cracked down Meaning of Deposit A deposit has been defined to mean: An amount of money received by way of […]...

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Posted Under: Income Tax |

Prohibition on Unregulated Deposit Schemes w.e.f February 21,2019

In order to put a check on illicit deposit-taking activities like Saradha scam and Rose Valley chit fund scam in the country that dupe poor and the financially illiterate of their hard-earned savings. The President of India promulgated the Banning of Unregulated Deposit Scheme Ordinance, 2019 w.e.f. February 21, 2019 (hereinafter referred...

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Posted Under: Income Tax |

Banning of Unregulated Deposit Schemes Ordinance 2019: Important points

The Govt passed the Banning of Unregulated Deposit Schemes Ordinance, 2019 on 21st Feb, 2019 to ban unregulated deposits. Article explains Who are Depositor and deposit taker, Banning of Unregulated Deposit schemes (UDS), What is Unregulated Deposit Scheme(UDC) and Regulated Deposit Scheme(RDS), What kind of deposits are considered under ...

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Posted Under: Income Tax |

Detailed analysis of Banning of Unregulated Deposit Schemes Ordinance, 2019

Through this article, an attempt has been made to understand the implication of Banning of Unregulated Deposit Schemes Ordinance, 2019. For the sake of better understanding, the author has divided the article into four parts comprising of the definition, the substantive law and the sanctions imposed....

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Posted Under: Income Tax |

Banning of Unregulated Deposit Schemes Ordinance, 2019 – Whether Applicable To Normal Business Activities?

Whether Banning of Unregulated Deposit Schemes Ordinance, 2019 also applicable to deposits, unsecured loans etc. accepted / taken for normal trading, manufacturing etc. activities or for personal needs....

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Posted Under: Income Tax |

Deposits exempt under Banning of Unregulated Deposit Schemes Ordinance, 2019

Banning of Unregulated Deposit Ordinance,2019, exempts Individual, Firm, Companies & LLP etc. for taking any loan and deposit for their course of business as per section 2(4) e,f ,l and other provisions. For the purpose of Banning of Unregulated Deposit Schemes Ordinance, 2019 “deposit” means an amount of money received by way of...

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Posted Under: Income Tax |

Important aspects of Unregulated Deposit Schemes Ordinance, 2019

The President has assented The Banning of Unregulated Deposit Schemes Bill, 2019, which was passed on the 13th day of February, 2019 in the House of the People; The purpose of Banning of Unregulated Deposit Schemes Ordinance, 2019 is to provide for a comprehensive mechanism to ban the unregulated deposit schemes and to protect the intere...

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Posted Under: Income Tax |

Deposits, Unsecured loans taken for Normal Business are not banned

, Unregulated Deposits Scheme Ordinance is an Ordinance to ban unregulated deposits as well as to protect the interest of Depositors. This ordinance was introduced on 21-Feb-2019. Everyone needs to study this ordinance of deposit and protect himself rather than believing on fake news....

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Banning of Unregulated Deposits Schemes- All you want to know

Introduction: – 1. On 21.02.2019, Govt. Of India has brought Banning of Unregulated Deposit Schemes Ordinance 2019 with following objectives: – a) For banning of unregulated deposits schemes; b) To protect the interest of depositors; and c) Other matters relating to or connected to the above two objectives 2. The Banning of Un...

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Posted Under: Income Tax |

Banning of Unregulated Deposit Schemes Ordinance, 2019

No. 7 or 2019 (21/02/2019)

(1) This Ordinance may be called the Banning of Unregulated Deposit Schemes Ordinance, 2019. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force at once....

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Cabinet approves Banning of Unregulated Deposit Schemes Ordinance, 2019

Cabinet approves Promulgation of the Banning of Unregulated Deposit Schemes Ordinance, 2019 The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Promulgation of Unregulated Deposit Schemes Ordinance, 2019. Benefits: The proposed Ordinance will immediately tackle the menace of illicit deposit taking activities in the ...

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Posted Under: Income Tax |

Modi’s Fight Against Black Money : Now ROC Radar on Long Outstanding Loans & Deposits Before or During Demonetization

This DPT 3 form is a multipurpose form which may be in use for i) return of deposits, ii) return of disclosure of money or loan received by a company but not considered as deposit as per rules and iii) one time return for disclosure of details of outstanding money or loan received by a company but not considered as deposit....

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Posted Under: Income Tax |

Own a home in Dubai – Be prepared to receive an IT notice

Own a home in Dubai? Beware! You are under Income-tax scanner Income Tax (IT) department is scrutinizing many Indians who have purchased properties in Dubai in the last few years under a new initiative. Based on the Intelligence gathered, the IT department’s Intelligence and Criminal Investigation (I&CI) wing has started issuing t...

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Posted Under: Income Tax |

1.06 Crore people filed ITR for 1st time mainly due to demonetization

Anti-black money measures brought undisclosed income of about Rs 1.3 Lakh Crore to tax  Rs 6,900 Crore worth Benami assets and Rs 1600 Crore worth foreign assets attached 18% growth in direct tax collection in Fy 2017-18 Tax base increased by 1.06 Crore people filing ITR for 1st time mainly on account of demonetization  The […]...

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Posted Under: Income Tax |

Say no to Cash Transactions- Income Tax Dept. Advises

DO NOT ACCEPT cash of Rs. 2,00,000/- or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. DO NOT RECEIVE OR REPAY Rs. 20,000/- or more in cash for transfer of immovable Property. DO NOT PAY more than Rs. 10,000/- in cash […]...

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Posted Under: Income Tax | ,

Do not enter into any Benami Transactions, It’s illegal & punishable

DO NOT ENTER INTO BENAMI TRANSLATIONS. IT’S ILLEGAL AND PUNISHABLE Benami Transaction is an arrangement in which a property (movable or immovable) is transferred to or held in the name of one person (Benamidar), but is actually owned and enjoyed by another person (beneficial owner). For exceptions – refer to The Prohibition of...

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Posted Under: Income Tax |

Time to say no to Cash, Go Cashless, Go Clean

IT’S TIME TO SAY NO TO CASH !  Go, Cashless. Go, Clean DON’T… Accept cash of Rs. 2,00,000/- or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion Receive or repay Rs. 20,000/- or more in cash for transfer of Immovable Property Pay more than […]...

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Posted Under: Income Tax |

Benami Transactions Act [including Amendment, 2016] – Complete Overview

Recently, Govt. has introduced a law which has given a sudden jolt to the real estate sector. But the fact is, it is not only the real estate sector which would be affected by this law but it would have an impact on all types of properties be it movable or immovable. This law is […]...

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Posted Under: Income Tax |

Benami Transaction (Prohibition) Act, 1988

A benami property is a property bought by the original owner using a proxy. This helps him park his unaccounted money safely while avoiding paying taxes to the government at the same time. Benami transactions are quite prevalent in land purchases, where unaccounted money is used to make the purchase....

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Posted Under: Income Tax |

Interplay of Corporate Veil With Benami Law

Benami transaction is a transaction or arrangement whereby the identity of real owner (beneficial owner) of property is concealed by showing someone else (benamidar) as owner on record. The beneficial owner provides or pays consideration for purchase of property....

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Posted Under: Income Tax |

ICAI withdraws Guide on disclosure of Specified Bank Notes

The Ministry of Corporate Affairs vide notification dated March 30, 2017 notified Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to the Companies Act, 2013. Vide this amendment, the following new clause was inserted in Rule 11 of Companies (Audit and Auditors) Rules, 2014...

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Posted Under: Income Tax |

Midnight knock of Demonetisation

It was just a week after the announcement of Notebandi [ its aftershocks still lingering in Indian Economy] I met Herambha Shastri . All of us may have good, bad or worst experience of Notebandi depending upon your stock of 500 and 1000 notes [out of 86% of total volume in the economy] on or after the fateful night 12.00 am of 8th Nove...

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Posted Under: Income Tax |

FM defends Demonitisation & explains its Impact

Demonitisation compelled holders of cash to deposit the same in the banks. The enormity of cash deposited and identified with the owner resulted in suspected 17.42 lakh account holders from whom the response has been received online through non-invasive method. ...

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Posted Under: Income Tax |

A year on from the Paradise Papers, the lack of progress is worrying

A year on from Paradise Papers, lack of progress is worrying

A year on from the Paradise Papers, the world has not made sufficient progress to tackle the secrecy that facilitates the hiding of wealth in tax havens. With 10% of global GDP estimated to be hidden in tax havens, and inequality rising both in developed and developing countries, the lack of progress is worrying, according […]...

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Posted Under: Income Tax |

Adjudicating Authorities & Appellate Tribunal under Benami Property Law- Reg.

Order No. S.O. 5602(E) (31/10/2018)

section 26 of the Benami Act provides that the Adjudicating Authority shall not pass order after the expiry of one year from the end of the month in which the reference has been received by it from the Initiating Officer and whereas, on the date on which the Adjudicating Authority under the Benami Act shall discharge the functions under ...

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Prohibition of Benami Property Transactions (Removal of Difficulties) Order, 2018

Order No. S.O.5194 (09/10/2018)

Whereas, sub-section (1) of section 48 of the Prohibition of Benami Property Transactions Act,1988 provides that a person preferring an appeal to the Appellate Tribunal under said Act may either appear in person ...

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CBDT notifies CIT(A) for respective CCA regions under Black Money Law

F.No. 279/Misc./M-44/2018-ITJ (01/10/2018)

Notification in respect of assigning jurisdiction to Commissioner (Appeals) under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BM Act)- reg....

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Restriction on disclosure of information received under PMGKY Scheme

Notification No. 59/2018-Income Tax [S.O. 5157(E)] (01/10/2018)

No public servant shall produce before any person or authority, any such document or record or any information or computerised data or part thereof as comes into his possession during the discharge of official duties regarding the PMGKY Scheme, other than those specified in section 199-O of Taxation Laws (Second Amendment) Act, 2016...

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Legality of Tax Havens and Black Money

Abstract As we all are well aware of the term ‘Tax’ which is defined as a revenue that is levied on the people by the Government based on their income and the commodities they purchase or sell. Evasion of Tax has always been considered to be an illegal action and people with greed often engage […]...

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Posted Under: Income Tax |

Demonetisation & its impact on Tax collection & Formalisation of Economy

The Reserve Bank has twice released its reports stating that the demonetised Notes of `500 and `1000 have been substantially deposited in the Banks. A widely stated comment has been that just because most of the currency came back into the Banks, the object of Demonetisation has not succeeded. Was the invalidation of the Non-deposited cur...

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Posted Under: Income Tax |

Few tips to Prevent Income Tax Raids

One should not keep any unaccounted or undisclosed money, property or income popularly known as black money. If such a disclosure is made before its detection by the Income Tax Department, the chances of being trapped in a tax raid are minimized. A tax raid may also be conducted against a person in possession of undisclosed income or prop...

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Posted Under: Income Tax |

Action on those Converting Black Money into White during Demonetization

Appropriate action by the Income-tax Department (ITD) and other Law Enforcement Agencies has been taken against those involved in the misuse of the Scheme of Demonetization. Such actions by the Income-tax Department included among others, conducting search and survey actions in relevant cases. During the period November 2016 to March, 201...

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Posted Under: Income Tax |

The Fugitive Economic Offenders Act, 2018

NO. 17 OF 2018 (01/07/2018)

Govt notifies Fugitive Economic Offenders Act, 2018. It shall be deemed to have come into force on the 21st day of April, 2018. The provisions of this Act shall apply to any individual who is, or becomes, a fugitive economic offender on or after the date of coming into force of this Act....

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Govt attaches Benami Properties valued over Rs. 4,300 crores

As on 30/06/2018, provisional attachments have been made in more than 1600 Benami Transactions involving Benami Properties valued at over Rs. 4,300 crores....

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Posted Under: Income Tax |

Steps for Curbing Black Money stashed abroad Lead Positive Results

The Government of India has taken various steps for curbing the black money stashed abroad, which have led to positive results. These steps include, inter alia, the following: 1. India has been a leading force in the efforts to forge a multi-lateral regime for proactive sharing of Financial Information known as Automatic Exchange of Infor...

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Posted Under: Income Tax |

Prompt investigation in fresh series of cases pertaining to ‘Panama Papers’

The fresh release made in the media today under ‘Panama Paper Leaks’ is being promptly looked into by the law enforcement agencies under the aegis of the Multi Agency Group (MAG) already constituted for facilitating coordinated and speedy investigation. ...

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Posted Under: Income Tax |

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