Published Date - 09 June 2018 04:56:17 Updated Date - 09 June 2018 04:57:52

Benami Transactions Informants Reward Scheme by Income Tax Dept.─ Informants Can Get Reward up to Rs 1 Crore

To encourage people to provide information related to benami properties and transactions, the government on June 1, 2018, announced the Benami information award. Under the reward scheme, informants/whistleblowers can also provide information related to the income earned on such properties by such hidden investors and beneficial owners.

Income Tax Department has launched a new Benami Transactions Informants Reward Scheme 2018 to curb tax evasion. Under this scheme, all the people who provides information / reports on benami transactions will get an award of Rs. 1 crore. This initiative will engage public to reduce black money and corruption from the system. People who wants to give information can download the prescribed Statement Form (Annexure A) at incometaxindia.gov.in

The CBDT today announced Benami Transactions Informants Reward Scheme, 2018, under which any person, including foreigners, can inform Joint or Additional Commissioners about benami transactions and properties which can be tried under the Benami Transactions (Prohibition) Amendment Act, 2016. 

This reward scheme is aimed at encouraging people to give information about benami transactions and properties as well as income earned on such properties by such hidden investors and beneficial owners , the Central Board of Direct Taxes (CBDT) said. 

"Under the Benami Transactions Informants Reward Scheme, 2018, a person can get reward up to Rs one crore for giving specific information in prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units (BPUs) in Investigation Directorates of Income Tax Department about benami transactions and properties as well as proceeds from such properties which are actionable under Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act 2016,". 

This reward scheme will encourage people to provide information about benami transactions and properties. In addition, Income Tax will be able to fetch information about income earned on such properties by hidden investors and beneficial owners.

In case the foreigners have any such information about a person, then they are also eligible for this Reward Scheme. IT department will not disclose the Identity (ID) of the Informant and will make it confidential.

 

What is benami property?

Benami means unnamed, thus any property bought by any individual, not under his/her name is benami property or going by the literal meaning, benami is a property without any name.
It can include 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 transactions include buying assets of any kind — movable, immovable, tangible, intangible, any right or interest, or legal documents.

Benami Transactions Informants Reward Scheme 2018

People can earn upto Rs. 1 crore by providing specific information in prescribed manner to Joint / Additional Commissioners of Benami Prohibition Units (BPUs) in Investigation Directorates of IT department. Moreover, any person giving information on stashed wealth (stored at secret places like SWISS Banks) can get upto Rs. 5 crore. Below is the complete procedure to Download Statement Format to give information:-

  • Firstly visit the official website incometaxindia.gov.in
  • On the homepage, click at the “Benami Transactions Informants Reward Scheme 2018 [New]” link under ‘What’s New’ section.
  • Direct Link – Candidates can directly check the complete information and statement format for this Benami Sampati Scheme in PDF format by clicking at the link – Benami Transactions Informants Reward Scheme 2018 (PDF)
  • The ‘Statement Format’ for informants will appear on the screen
  • This scheme will result in people’s participation in revealing Black Money and Tax Evasion. It is also assured that the Income Tax department will take strict actions against the persons with Benami Properties. IT department has sent a copy of circular for this Reward Scheme in every Income Tax office across the country.

Background

IT department has found out that are a large number of cases where black money is invested in properties in the name of other people. This investors conceal their beneficial ownership while filing the tax returns. Previously, IT dept. takes actions on such people under the Benami Property Transactions Act, 1988 which later got ammended into Benami Transactions (Prohibition) Ammendment Act, 2016.Now, IT Department has proposed a new Benami Transactions Informants Reward Scheme, 2018. To get more details, candidates can visit the official website of Income Tax Department at www.incometaxindia.gov.in

 

 


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