I-T Acts Under Benami: 87 Notices Issued, 42 Assets Attached

The Income Tax officials on Monday slapped the stringent provisions of the Benami Transactions Act.

The Benami Act attracts a heavy penalty and rigorous jail term of maximum seven years. (Photo: iStockphoto)

The Income Tax department, on Monday, said it has issued 87 notices and attached bank deposits worth crores in 42 cases nationwide under the newly enforced Benami Transactions Act – initiating stringent action against black money holders post note ban.

After the 8 November demonetisation move, the I-T department had carried out public advertisements and warned people against depositing their unaccounted old currency in someone else's bank account. They said that such an act would attract criminal charges – applicable on both movable and immovable property.

After in-depth investigations, the I-T department has issued 87 notices under section 24 of the said Act (notice and attachment of property involved in <i>benami</i> transaction). A total of 42 properties, largely monies worth crores in bank accounts and an immovable property of <i>benamidars</i> has been attached.

Officials told <i>PTI</i>

The I-T department is the nodal department to enforce the said Act in the country. They said the taxman has issued numerous summons under the Benami Transactions Act and is in the process of issuing more.

The decision, they said, to slap the stringent provisions of the Benami Transactions Act was taken after analysing serious cases where the illegalities were blatant and suspected cash was deposited either in benami accounts or Jan Dhan or dormant accounts.

The taxman had initiated a nationwide operation to identify suspected bank accounts where huge cash deposits have been made after demonetisation.

The benami amount in the bank account deposited post demonetisation will be seized and confiscated and the accused will also be liable to fine which extends upto 25 percent of the fair market value of the benami property.

The Benami Act, the official had said, provides that the benamidar, the beneficial owner and any other person who abets or induces the benami transaction, shall be punishable with rigorous imprisonment for a period ranging from one to seven years.

(With inputs from PTI)