Benami Transaction Act: Income Tax Department has initiated harsh action against black money holder post demonetisation while issuing 87 notices and also attached bank deposits worth crores in 42 cases nationwide under Benami Transactions Act. Under the act, the accused may be sent to jail for minimum 7 years and a heavy penalty.
Agency had initiated a campaign to aware people depositing their money in someone else’s banks.
After demonetisation announced by the center government on November 18 last year, the agency had initiated a campaign to warn people against depositing their unaccounted old currency in someone else’s bank account saying such an account act would attract criminal charges under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property which has been implemented from November 1, 2016
“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 Benami transaction). A total of 42 properties, largely monies worth crores in bank accounts and an immovable property, of benamidars, have been attached,” officials said citing an analysis report, also accessed by PTI.
They said I-T Department has served many summons under the Benami transactions Act and is in the process of serving more.
The act has been implemented after analysing serious cases where the illegalities were blatant and suspect cash was deposited in either Benami accounts or Jan Dhan or dormant accounts.
The agency has started a nationwide operation to find out suspect bank accounts where huge cash is placed post-November 8 when the Modi announced to scrap the old currency of Rs 500 and Rs 1000 notes.
Benami Transaction Act: The Act allows I-t department to seize and prosecute the person who has illegal money
Officials said the Act allows the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has “adjusted” in their account.
“Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 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 categorised under this law as a benamidar,” a senior official had explained earlier.
