Income Tax Department tightens the noose on Benami Act violators

The Income Tax Department on Friday warned that those who undertake Benami transactions would invite Rigorous Imprisonment (RI) of up to 7 years and such violators would also stand to be charged under the normal I-T Act.

In advertisements issued in leading national dailies today, the Income Tax department stated: "Do not enter into benami transactions" as the Benami Property Transactions Act, 1988, is "now in action" from 1 November 2016.

"Black money is a crime against humanity. We urge every conscientious citizen to help the government in eradicating it," it said.

The department also spelled out some salient features of the new Act: "Benamidar (in whose name benami property is standing), beneficiary (who actually paid consideration) and persons who abet and induce benami transactions are prosecutable and may get RI up to 7 years besides being liable to pay fine up to 25 percent of fair market value of benami property.Read the entire FirstPost story here