The Centre gives a quick guide to win Rs 1 crore informing neighbor’s Benami Property:
The central government is planning to give the cash reward of Rs. 1 Crore to secret informers who provide information about benami property to investigation agencies. This initiative is likely to be announced by month of October end or first week of November.
It is a common practice by the Enforcement Directorate, the Income Tax department and Directorate of Revenue Intelligence to reward informers. The reward, however, is not so producing a great deal. However now, officially decided to give attractive award prize for informers, so their task will become easy and they will catch Benami property holders. A senior Central Board of Direct Taxes (CBDT) official who is part of the policy-making said on condition of anonymity, “An informer will get minimum Rs 15 lakh and maximum Rs 1 crore.”
What is Benamdar in Benami Properties?
The person in whose name the property is purchased is called Benamdar. Finding Benamdars is very difficult task for income tax officials as well as the administrators.
What are the Benami Properties?
Benami in Hindi means without a name. Generally, to evade taxation, people invest their black money in buying benami property. The real owner properties are hard to trace due to fake names and identities. Following are the Benami Property:
- The benami transactions include buying assets of any kind — movable, immovable, tangible, intangible, any right or interest, or legal documents.
- A property bought by an individual, not under his or her name is benami property.
- Property held in the name of spouse or child for which the amount is paid out of known sources of income.
- A joint property with brother, sister or other relatives for which the amount is paid out of known sources of income also falls under benami property. The transaction involved in the same is called benami transaction.
- The benami properties attached include deposits in bank accounts and immovable properties.
How to Win Cash Reward?
According to the official, the informer needs to inform details about benami properties to investigation agencies of CBDT. The department will never disclose the identity as this could endanger the informer.,” he said.
CBDT official statement on Benami Properties Cash Reward:
A senior CBDT official told ANI, “It would be a lot easier, faster and effective method of operation if we take the help of informers. If we have an attractive award prize for informers then our task will become easy and we will start cracking benami property holders nationwide, he further added. This policy is now with Finance Ministry. Once it gets approval from Finance Ministry and a Final nod by Finance Minister, it will be announced by CBDT. An announcement is expected to be made by October end or first week of November.”
To curb black money, the government decided to amend original act and the Benami Transactions (Prohibition) Amendment Act, 2016 came into effect from1st November 2016. Several benami transactions have been identified since the coming into effect of the amended law. The Benami Property Law introduced last year lacked this provision of secrecy of informer.