Get 7-year jail for depositing black money in friend’s account

November 21, 2016

Get 7-year jail for depositing black money in friend’s account : Income Tax Department

New Delhi: In wake of demonetization, Modi government announced on Sunday that if anyone wishes to deposit old currency in their friend’s account then the person will get a jail of 7 years.

Under the Benami Transactions Act, the charges include a penalty, prosecution and rigorous jail term of a maximum seven years.

Recently, a survey was done by the income tax department which revealed that several people are doing suspicious utilization of the demonetized cash. Since November 8, over 50 crore Rs has also been seized in these operations.

The sources said the taxman has initiated a country-wide operation to identify suspect bank accounts where huge cash deposits have been made post November 8, when government demonetised the Rs 500 and Rs 1000 currency notes.

Such incident where the doubt is observed to be genuine will be indicted under the Benami Property Transactions Act, 1988, appropriate on both mobile and enduring property, that has been upheld from November 1 this year.

They said the Act enables the taxman to take and indict both the contributor and the individual whose unlawful cash he or she has “balanced” in their record.

“The CBDT has asked the Income Tax division to nearly screen every such exchange where individuals are utilizing financial balances of different people for stowing away and changing over into white their dark cash utilizing the old coin notes of Rs 500 and Rs 1000.

“Officially a few examples have been accounted for in such manner and the division is set to issue sees under the Benami Act,” the sources told PTI.

Fundamentally, they said, the notification will be issued in instances of immense money stores past the edge of Rs 2.5 lakh however in situations where a suspicious report is gotten from the bank or the Financial Intelligence Unit underneath this limit will likewise be examined.

“Such a game plan where a man stores old cash of Rs 500 and Rs 1000 in the financial balance of someone else with an understanding that the record holder might give back his cash in new money, the exchange should be viewed as benami exchange under the said Act.

“The individual who stores old money in the financial balance should be dealt with as gainful proprietor and the individual in whose ledger the old cash has been saved might be sorted under this law as a benamidar,” a senior authority clarified.

The Benami Act, the authority said, gives that the benamidar, the gainful proprietor and some other individual who abets or actuates the Benami exchange, should be culpable with thorough detainment for a period extending from 1-7 years.

“The benami sum in the ledger saved post de-monetisation will be seized and reallocated and the blamed will likewise be obligated to fine which augments upto 25 for each penny of the honest estimation of the benami property,” the authority said.

The Income Tax division has ventured up its activity to check dark cash exchanges, government evasion and assessment avoidance in the wake of the de-monetisation and has issued several notification of enquiry to altruistic and religious trusts to demonstrate their record adjusts and to the individuals who have saved tremendous trade out their financial balances.