7-Year Jail for Illegal Cash Deposits, Tax Department Warns Violators

Tax department announced to charge penalties for violating Benami Transaction Act.

New Delhi: Tax department warned people are depositing their money in someone other’s accounts. The violators of the Benami Transaction Act may undergo legal actions by the court. The tax department decided according to penalty and also jail in severe cases. The violators may get imprisonment for up to seven years.

Tax department conducted more than 80 surveys. The studies recorded above Rs. 200 crores of income which was undisclosed. They also conducted searches in case of suspicious currency usage. From 8th of November, they have seized about 50 crores from all over the states.

An operation is initiated across the country to dig out suspected bank accounts. These alleged bank accounts had deposits of huge amount after 8th of November when demonetization of Rs. 500 and Rs.1000 notes of currency.

7-Year Jail for Illegal Cash Deposits

The act included punishment for both the depositor as well as the one whose account is used for adjusting money illegally. Income tax department has also asked to monitor the transactions to find the suspicious ones. The accounts which are used to hide and convert black money to white money-saturated in the currency notes of Rs. 500 and Rs. 1000.

There are some instances reported suspicious in the above regard. These cases are now subjected to charge penalties under the Benami Act. In the case of deposits of the huge amount which is above rupees 2.5 lakhs, notices are issued from income tax department. The cases where the value is lower than this threshold will also be investigated.

The Benami transaction is the one where a person deposits his black money in another person’s bank account with the deal of returning that money in currency notes of Rs.500 and Rs.1000 in the form of new currency notes. Such transaction is illegal and also punishable.

The person who deposits capital in old currency notes is the owner beneficial for the account. Regarding the beam transaction act, this person who is depositing other’s black money in his account is referred as ‘Benamidar.’

Under the Benami Act, all people including the benamidar is subjected to the punishment. All such involved people may have to suffer the punishment of imprisonment for one to seven years.

Income tax department will seize the amount which was deposited after the announcement of demonetization. Accused found in such illegal transactions have to pay a penalty of about 25 percent of the ‘Benami property’s market value. This statement was announced officially.

Income Tax department is full alert to keep an eye on all the possible ways of converting black money to white money. The staff is checking out for all the transactions which involve black money. They are trying to their fullest for catching money laundering cases and the cases of tax evasion.

Since the moment of demonetization announcement, the income tax department had issued hundreds of notices for inquiry purpose. Most of the notices were meant for religious and charitable trusts. They had to show detailed transactions of their accounts who have deposited huge capital after demonetization.

Via : Times of India

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