Home Government and Policy Revenue department sends notices to about 10,000 people under the benami law

Revenue department sends notices to about 10,000 people under the benami law

The revenue department, while scrutinizing data on deposits of demonetized currencies has issued notices to about 10000 people under the benami law seeking sources of their income, as reported by The Economic Times.

Sources in the department confirmed that many other may get similar notices in the coming week. “While the money may have come into the banking system, the money has come with a name,” said a senior official close to the development. “Not just income tax but several government departments can now use the data for future investigations.”

Experts have reportedly stated that the Income Tax department is focusing on larger transactions as of now and the people who have evaded tax could be in trouble.

- Advertisement - - article resumes -

The department has been utilizing data analytics including phone numbers, credit card and PAN details, tax returns and even data available on social media platforms to detect tax evasion.

The benami notices are preliminary and have been issued to those who had deposited unaccounted cash or whose cash deposits may not correspond with their income or in many cases not belonging to them. The report also mentioned that the notices would mean both the bank account holder and the one who deposited the amount would face benami investigations.

Experts maintained that demonetization has brought several suspicious transactions under the tax department’s scrutiny through ‘cross-referencing’ with older data. They furthered that the government is using advanced tools to analyze and establish relationships among different entities up to 16 levels deep, based on different details such as addresses, phone calls, social media interactions, travel trends and IT returns.

The Modi government, since the time, has come to power, undeterred to fight corruption and tax evasion has tightened the noose around tax dodgers.

The November 8, 2016 decision to scrap banknotes of Rs 500- and Rs 1,000 denomination was aimed at cornering black-money hoarders into depositing or exchanging old notes at banks.

Under ‘operation clean money’, which was launched on January 31 2018, to detect shady funds deposited with banks, more than 60,000 persons, including 1,300 high-risk persons, according to data collected until February 2018, had been identified for an investigation into claims of excessive cash sales during the demonetisation period and were sent notices to explain the sources of their income.

As reported on July 25, in its quest to fight corruption the government had attached more than Rs. 4,300 crores of benami properties in the country.

Benami properties are those assets which are bought by an individual, not under his or her name. It can include properties which are held in the name of spouse, child or any other family members, for which the amount is paid out of known sources of income.

Experts believe the Benami Transactions (Prohibition) Act 1988 which was amended by the present government to provide more teeth to fight against illicit transactions and black money, is stringent and infractions can lead to imprisonment up to seven years and fine for violation of the Act which may extend to 25% of the fair market value of the benami property.

Recently, the government cracked down more than 16,500 shell companies and has put another 80,000 companies under the scanner and has also introduced a reward scheme to clamp down on benami properties.

Help Us Reach Every Indian, Please Share This Post
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Advertisement

Big Story

The Kolkata police finally swung into action and arrested seven men: Sheik Rahit, Fardin Khan, Sk. Sabir Ali, Sk. Gani, Sk. Imran Ali, Sk. Wasim and Atif Khan, for allegedly harassing the complainant.

2019 World Cup Is Here!

Catch the latest on Cricket World Cup as it unfolds, special coverage by Opindia

Anjana Om Kashyap heckles doctors and nurses in Bihar hospital

What you did in that ICU is not journalism, Anjana Om Kashyap, it is insensitive, creating a nuisance and endangering lives

A video came to light earlier where Anjana Om Kashyap, a senior journalist from the India Today group was seen heckling and questioning a doctor inside the ICU over the outbreak of Encephalitis in Bihar

Rapper Hard Kaur goes mental on social media: Blames RSS Chief for terror attacks, calls Yogi ‘OrangeRapeMan’

Taran Kaur Dhillon, more popularly known by her stage name Hard Kaur, appears to have fallen over the edge.

After threatening Jesus to choose between her and Rakhi Sawant, Tanushree Dutta questions Modi’s ‘Ram Rajya’

The Mumbai police have recently filed a B Summary report, giving a clean chit to Bollywood actor Nana Patekar, in connection with actor Tanushree Dutta sexual harassment case
Gujarat: Past karma will haunt Congress in fascinating Rajya Sabha bypoll irony

Gujarat: Past karma will haunt Congress in fascinating Rajya Sabha bypoll irony

The bypolls for the 2 vacant Rajya Sabha seats from Gujarat are going to be held shortly. The Congress has moved the SC, but given the clear precedents, it is quite clear that they have no chance of winning in court.
Read OpIndia.com's response to the defamation notice served by Swati Chaturvedi

That you have lost readership and your peers doubt you, is not our problem: Read our response to Swati Chaturvedi’s defamation notice

Recently, OpIndia.com got a legal notice from abusive media troll Swati Chaturvedi. At the onset, we would like to reiterate that such intimidatory tactics won't work with OpIndia.

As Swati Chaturvedi mourns the loss of her imaginary credibility, her past faff pieces come to haunt her

Even though she wants to put the blame on us, we can't possibly be held responsible if Swati Chaturvedi's peers doubt her 'credibility'.

On press freedom day, meet the ‘fearless’ journalist who interviewed Rahul Gandhi and said ‘Rafale has entered people’s blood’

Now, as if the India Today interview fiasco wasn't bad enough, another pliant journalist has got the "once in a lifetime" opportunity to interview Rahul Gandhi.

Man masturbates on woman and abuses before running away: See Kejriwal? Free rides won’t guarantee safety

The daily harassment women face while commuting in the Delhi metro just shows how 'free metro ride' does not ensure safety.
Image Source: Zee News

Even as Indian liberals and peaceniks hail ‘peaceful’ Pakistanis, abuse pours in against Sania Mirza post world cup defeat

After motormouths like Veena Malik dragged Sania Mirza into an unwarranted controversy, it was time for other eminent intellectuals of Pakistan to share their blame on Sania Mirza.
Subscribe to Day's Top Stories
- Advertisment -

Latest articles

Connect with us

170,751FansLike
149,591FollowersFollow
69,810SubscribersSubscribe
Help Us Reach Every Indian, Please Share This Post