Benami Transactions Act: With the coming of demonetization, more and more black money has been curbed. While the black money hoarders look out for a way to evade coming under the scanner of the income tax department, the government has announced its plans to undertake strict actions against those who will try to violate the law.
Stringent laws enforced under Benami Transactions Act –
“The CBDT has asked the Income Tax department to closely monitor all such transactions where people are using bank accounts of other persons for hiding and converting into white their black money using the old currency notes of Rs 500 and Rs 1000…Already some instances have been reported in this regard and the department is set to issue notices under the Benami Act.”
Under the recently introduced Benami transactions Act, the person who will be found depositing one’s unaccounted money into a friend’s or relative’s bank account will be punished under the law. The punishment can range from a penalty, prosecution or a jail term ranging from 1 to 7 years.
As the recent reports by approx 80 surveys suggest, a sum of Rs 200 crore has been found to be unaccounted or undisclosed.
Any suspicious deposit made beyond Rs 2.5 lakh will be investigated. If the undisclosed amount is less than Rs 2.5 lakh, it may come under the scanner of the income tax department.
An official said, “Such an arrangement where a person deposits old currency of Rs. 500 and Rs. 1,000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as Benami transaction under the said Act. The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorized under this law as a benamidar.”
