NEW DELHI: The government is gearing up to crack the whip on benami transactions and properties. It has directed the taxman to ‘go aggressive’ on such cases and monitor all big-ticket transactions within three months of demonetisation.
“The government is steady in its fight against black money, which will intensify in the coming days. There is an instruction to go aggressive on benami transactions and properties. The ministry will keep a close tab on all such transactions and property,” said a senior finance ministry official.
“We have opened 24 units to implement the Benami Act and the number will double in the next six months. We are closely watching high-value transactions, suspicious transactions and the purchase of property within three months from the date of demonetisation. We are also looking at cases where income saw unreasonable hike,” the official added.
As a part of this move, the income tax department on Wednesday warned people to “keep away” from benami transactions, cautioning that violations under the newly enacted law would invite criminal prosecution and rigorous imprisonment up to seven years.
The government also urged “conscientious citizens” to help it eradicate black money, which it termed a “crime against humanity”.
It added that benami property “may be attached and confiscated by the government” and that this action will be in addition to prosecution under the Income Tax Act of 1961 for tax evasion charges. It also warned that “persons who furnish false information to authorities under Prohibition of Benami Property Transactions Act, 2016, are prosecutable and may be imprisoned up to five years besides being liable to pay fine up to 10 per cent of the fair market value of benami property”.
The tax department started initiating action under the new Benami Transactions (Prohibition) Amendment Act, 2016 from November 1, 2016. Between then and October 2017, issued 517 notices and attached benami assets worth `1,833 crore across the country.