Black money: I-T officials taking a hard look at property deals
New Delhi: The Income Tax department will comb through the tax history of all people who have registered property valued above Rs30 lakh to check if any tax evaders own such properties by proxy, Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said.
Mismatches between asset ownership and reported income enable the department to identify cases of tax evasion. In benami ownership, the beneficial owner of the asset will be different from its legal owner.
The Benami Transactions (Prohibition) Act was notified for implementation on 1 November last year. Since then, tax department has attached 621 properties, including some bank accounts, and the total amount involved in these cases is about Rs1,800 crore, the CBDT chairman said.
The tax department is also investigating the shell companies that were recently struck off the registry and their directors as part of the drive against black money generation, the official said.
“We will destroy all instruments that are used to launder unaccounted wealth. This also includes shell companies,” Chandra told reporters after inaugurating the Income Tax department pavilion at the India International Trade Fair (IITF) which began at New Delhi’s Pragati Maidan on Tuesday.
Chandra said the tax authority has already done a lot of work on tracking down benami assets.
Mint had reported on 6 November that heightened surveillance and a crackdown on black money has led to a three-fold increase in PAN (permanent account number) registrations, an 18% rise in income tax returns as well as a significant increase in the number of properties seized by the tax department.