India gets cracking on benami property deals

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After the historic drive to scrap high denomination notes, the Narendra Modi government has now decided to crack down on benami or dubious property deals.

On Friday, The Income Tax department put out a major notice warning taxpayers not to enter into dubious deals as the Benami Property Transactions Act was now in action from November 1.

The Prohibition of Benami Property Transaction Act of 1988 became effective from November 1, 2016.

“Benami property might be connected and seized by the administration,” the notice said.

The assessment office additionally cautioned those enjoying the trashy property manages imprison term and robust fines.

“Benamidar (in whose name benami property is standing), recipient (who really paid thought) and people who abet and initiate benami transactions are prosecutable and may confront thorough detainment up to 7 years other than being obligated to pay fine up to 25% of equitable estimation of benami property,” it said.Persons who furnish false information to authorities under the Benami Act are prosecutable and may be imprisoned up to 5 years besides being liable to pay fine up to 10% of fair market value of benami property, it said.

While the demonetisation drive was gone for battling the threat of dark cash, defilement and fear financing, numerous commentators have called attention to that expense dodgers have as of now spend a noteworthy bit of the unaccounted cash into land, gold and different resources.

In December, Modi cautioned that the battle against dark cash was not over with demonetisation as the following stride will be a get serious about benami properties.

The Modi government has so far instituted the Undisclosed Foreign Income and Assets (Imposition of Tax) Act to bring back money reserved abroad, and propelled two Income Disclosure Schemes (IDS) prior and then afterward note ban.

On November 8, Modi announced scrapping of old Rs 500 and Rs 1,000 notes which amounted to Rs 15.44 lakh crore or 86% of the total currency in circulation.

The government and Reserve Bank of India has been able to pump in about Rs 10 lakh crore in new Rs 55 and Rs 2,000 notes so far.

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