Tax Department Turns Up The Heat On Benami Act Violators With A Warning

The tax department today (3 March) issued a warning against undertaking benami transactions as it would invite rigorous imprisonment of up to seven years under the Income Tax Act.

The tax department said that a 'Strong Team' will be put in place to effectively deal with benami properties as well as undisclosed foreign income and assets. The Central Board of Direct Taxation is planning to form a special unit, whose task it will be to investigate and act against ‘benamidars’ and black-money holders having undisclosed foreign income and assets.

Currently, under the Finance Ministry, joint/additional commissioner of income tax, an assistant/deputy commissioner of income tax and a tax recovery officer in each region have been notified to perform the functions and exercise the powers of the approving authority, initiating officer and administrator respectively under the Prohibition of Benami Property Transactions Act.

The Income Tax Department had identified 235 benami properties and attached properties worth Rs 55 crore till mid-February.

With inputs from ANI