After Keep-Away-From-Benami-Property Warning, I-T Dept Talks About Action
The avid readers of newspapers found themselves filled with sense of jitters after coming across one particular advertisement on Wednesday morning. This advertisement from the Income Tax Department (ITD) , titled, Keep Away From Benami Transactions, spoke of how severe the punishment could get for those involved in unlawful tricks. Invoking “every conscientious citizen to help the government in eradicating it", the department ad went on to count the pitfalls of engaging in benami transactions.
For the uninitiated, benami, is a Persian word, which literally means something without a name. In the current scenario, an asset without a legal owner or a fictitious owner is called benami. The Benami Act, which was originally introduced in 1988, defines a benami transaction as a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person. The Act was amended in 2016 to prohibit benami transactions and provides for confiscating such properties. The government has been since reiterating its stand to go tough against such transactions. In fact, between November 2016 and October 2017, the department had attached benami assets worth Rs 1,833 crore across the country, issued 517 notices and made 541 attachments.
The word of caution
Coming back, while stating that “black money is a crime against humanity”, the department advertisement elaborates on how troublesome it could get in case you get involved in such transactions.
"Benamidar (in whose name benami proper is standing) , beneficiary (who actually paid consideration) and persons who abet and induce benami transactions are prosecutable and may face rigorous imprisonment upto 7 years besides being liable to pay fine upto 25 per cent of fair market value of benami property," the I-T advertisement said.
"Persons who furnish false information to authorities under Prohibition of Benami Property Transactions Act, 2016, are prosecutable and may be imprisoned upto five years besides being liable to pay fine upto 10 per cent of fair market value of benami property," said the advertisement.
It further said that "benami property may be attached and confiscated by the government", and "this action will be in in addition to prosecution under the Income Tax Act of 1961 for tax evasion charges".
In case you try to access the official website of the department, this advertisement would be the first thing glaring at you till, of course, you decide to overlook the warning and reach the main content.
The real action
Day after, the department said it had attached more than 900 such properties worth over Rs 3,500 crore. These include immovable properties such as flats, shops and movable properties such as jewellery and vehicles. Of the total amount, Rs 2,900 crore worth immovable property was attached, the ITD said.
Of the many entities whose immovable assets have been attached is a real estate company, the department, said, which had acquired about 50 acres of land valued at more than Rs 110 crore, using the names of people of insignificant means. The sellers and the brokers were part of the unlawful act.