Govt offers up to Rs1 cr for info on benami property
01 Jun 2018
The Income Tax Department has announced a new reward scheme for informants of benami property and benami transactions, in order to obtain people’s participation in the department’s efforts at unearthing black money and reducing tax evasion.
The new reward scheme supersedes the earlier reward scheme announced in 2007.
Titled 'Benami Transactions Informants Reward Scheme, 2018’, this reward scheme aims at encouraging people to give information about benami transactions and properties as well as income earned on such properties by such hidden investors and beneficial owners.
Under the Benami Transactions Informants Reward Scheme, 2018, a person can get reward up to Rs50 lakh for giving specific information in prescribed manner to the designated officers of Investigation Directorates in Income Tax Department about substantial evasion of tax on income or assets in India which are actionable under the Income-tax Act, 1961.
Informants can get reward of up to Rs1 crore for giving specific information in prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units (BPUs) in Investigation Directorates of Income Tax Department about benami transactions and properties as well as proceeds from such properties which are actionable under amended Benami Transactions (Prohibition) Amendment Act, 2016.
Foreigners will also be eligible for such reward. Identity of the persons giving information will not be disclosed and strict confidentiality will be maintained.
Details of the reward scheme are available in the Benami Transactions Informants Reward Scheme, 2018, copy of which is available at Income Tax offices and on the official website of Income Tax Department www.incometaxindia.gov.in.
It was found in many cases that black money was invested in properties in the names of others, even though benefits were enjoyed by the investor concealing his / her beneficial ownership in the tax returns. The government had earlier amended Benami Property Transactions Act, 1988, by Benami Transactions (Prohibition) Amendment Act, 2016 to make the law stronger.
The government had earlier introduced Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in order to investigate and assess income and specific assets kept in foreign countries by people taxable in India, recover tax on it and take other actions like penalty and prosecution.
Under this the department offers reward of up to Rs5 crore for information about such income and assets actionable under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The amount has been kept high to make it attractive to potential sources in foreign countries.
Under this Scheme, a person can get reward for giving specific information in prescribed manner about substantial tax evasion on income and assets abroad which are actionable under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Foreigners are also eligible for reward under this scheme. Identity of the persons giving information will not be disclosed and strict confidentiality shall be maintained, the department said in a release.