7 Yrs Imprisonment for benamies

New Delhi, March 04: The Income tax department has warned the benamies, 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 November 1, 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.

"It added that "persons who furnish false information to authorities under the Benami Act are prosecutable and may be imprisoned up to 5 years besides being liable to pay fine up to 10 percent of fair market value of benami property."

"A total of 235 cases and instances have been registered under the said Act by the department till mid-February this year.

Show cause notices for attachment have been issued in 140 cases where benami assets worth Rs 200 crore are involved.

"In 124 cases, benami assets worth more than Rs 55 crore have been provisionally attached till now," an I-T report, had said.