Mumbai, Feb 12: The Income Tax department's Criminal Investigation wing has identified 2,000 Indian citizens who hold properties in Dubai but had failed to declare it in their IT returns.
In its ongoing crackdown on black money, the agency has identified Indian citizens who purchased properties in Dubai but failed to declare and explain the source of funds used to purchase these properties.
In the past few years, people have used shell companies to route illegal money and buy overseas properties to evade income tax.
However, the tax department has now increased its efforts to track down those involved in major tax evasion cases.
The 2,000 persons and companies identified mainly include businessmen, top professionals, and government officials.
The IT department will initiate action against the accused under the Black Money Act.
Citizens who own properties outside the country but fail to declare the source of funds or income used for the purchase could be prosecuted under the Black Money Act.
Under Section FA (Foreign Assets) of the Income Tax Act, an individual has to declare purchase and ownership of properties, assets, companies owned outside the country while filing the income tax returns annually.
In the recent drive against black money, the IT department identified 2,000 Indian nationals who failed to provide information on the same while filing IT returns.
Of the 2,000 citizens owning properties in Dubai, around 600 could not furnish details regarding purchase details.
Those who haven't been able to explain the source of funds used for the purchase of properties could be prosecuted and their properties can be attached by the agency.
Other than the attachment of the property, they can face a monetary penalty up to 300 per cent of the property value and also face imprisonment under the Black Money Act.
The properties owned by Indians in Dubai raised red flags as this pattern of parking money is used by money launderers, smugglers, underworld gangsters and drug traffickers for making payments.
It is worth mentioning that of the 2,000 citizens identified, most are residing in Mumbai, followed by Kerala and Gujarat.
The clause under section FA (foreign Assets) came into effect in the year 2011-12 and it is mandatory for people owning properties outside India to declare it in their IT returns.
Those identified by IT department could also face action under FEMA (Foreign Exchange Management Act) by the Enforcement Directorate under Section 4.
Recently the Enforcement Directorate (ED) launched a crackdown on black money parked overseas by tracking and identifying immovable assets bought overseas by Indian nationals illegally.
The move is being carried out under rules laid down under Section 4 of FEMA (Foregn Exchange Manipulation Act), 1999. Section 4 of FEMA states that no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India.
On January 17, the Enforcement Directorate (ED) conducted searches at the residence of a former chief engineer of Brihanmumbai Municipal Corporation (BMC) in connection with an inquiry related to FEMA.
In the raids, the ED officials recovered documents related to the purchase of a property in Dubai in an allegedly illegal manner.
The ex-BMC chief engineer was posted with some of the most crucial wings of the municipal corporation -- the building proposal department and development plan department.
The agency did not disclose the name of the ex-BMC chief engineer but it has been learnt that he had superannuated around seven years ago from the municipal corporation.
ED, in a statement, said incriminating documents with regard to illegal acquisition of a property held in Dubai was recovered during the search operation.
The former BMC chief engineer has stated that he had purchased the property in Dubai at 'Park Island, Bonaire Marsa, Dubai' for Rs 70 lakh in 2012. The property is held jointly in his name, his spouse and son.
The retired BMC officials could not furnish any documents which would help ascertain the value of the property and also could not provide details on how the payments were made to buy the property in Dubai.
The citizens identified by the IT department recently also adopted a similar route to buy property in Delhi. It remains to be seen how the income tax department plans to penalise them.
Comments
Masha Allah
Majority of Indian population are dalit, If 70% of dalits convert to Islam in India.Islam will become the number one in India.
Any individuals while choosing religion, he will go for the best religion.
Finally he will find Islam, because Islam is the best and easy to follow religion.
Accepting any religion means, agreeing its doctrine and following its teaching.
It has come to from the heart. Nobody can force to follow any religion nor can force to change it.
It comes from his inner conscience, what he or she feels comfortable.
We may force somebody to remain in the same religion or we can force also to change into any religion, which is like asking someone to agree and believe 2+2=3. Even if a person agrees to come under pressure, it means, he is not following its teaching by will and wish. So he can definitely violate and disobey its teaching.
Now coming into this case, first of all they are not comfortable what their fellow followers did them to ban the entry into temple. And no equality in their society. This is the main reason
Now choosing new religion is purely understanding and convincing its doctrine and real teaching.
Our constitution also empowers everyone to follow freely any religion. Not only this, it also empowers to propagate to others.
It is a great constitution.
Guide them properly OR Leave them alone.
Accepting any religion means, agreeing its doctrine and following its teaching.
It has come to from the heart. Nobody can force to follow any religion nor can force to change it.
It comes from his inner conscience, what he or she feels comfortable.
We may force somebody to remain in the same religion or we can force also to change into any religion, which is like asking someone to agree and believe 2+2=3. Even if a person agrees to come under pressure, it means, he is not following its teaching by will and wish. So he can definitely violate and disobey its teaching.
Now coming into this case, first of all they are not comfortable what their fellow followers did them to ban the entry into temple. And no equality in their society. This is the main reason
Now choosing new religion is purely understanding and convincing its doctrine and real teaching.
Our constitution also empowers everyone to follow freely any religion. Not only this, it also empowers to propagate to others.
It is a great constitution.
Guide them properly OR Leave them alone.
Welcome brothers and sisters ....Proud to be MUSLIMS
Islam invites people who learn about it and understand it. not to increase numbers....no need to convert just because they are not allowed in temples, they can follow their faith even from their hearts.
@ venki
Islam does not allow forced conversion.....we invite to the path of Islam. If someone wills then only..moreover we are not minorities in the world like you.....
@yogesh..
i think the people already know better to join islam than supporting RSS Terrorrists right....
Hari, nothing is impossible in this world, for that you need good heart and mind which I cannot see it in those so called hindutva group....they are all still remaining in their old and orthodox thinking. As a matter of fact there is no such a thing called upper and lower cast in the society but it has been created by bloody brahmins for their benefits...
Venke, Sangeeth .....if you feel that one can pray at home, then why you people are fighting for Ayodhya temple.... Beef exporting hypocrites....
If they convert to Islam....there they get all types of respect, which they have not seen and imagined in their entire past life...great religion......nice choice....well come guys....
Sangeeth Manglore
Yeah... they can pray anywhere as they are considered born out of feet.. Only those born out of Gods head, needed rich temples to pray and enjoy public wealth. Opportunistic
Hindutva group will do nothing if Dalits convert to Jainism, Buddhism but, as soon as Dalits want to convert to Islam or Christianity, Saffronist will come into action with some stupid solution
The best solution is as mention by Mr Rikaz, that all the Dalits must get BRAHMIN STATUS then all the discrimination may end.
Good that hindutava group is taking initiative......they should upgrade their status from lower caste (dalit) to upper caste (Brahmin) This is only the amicable solution for this problem, otherwise this problem (ill treating dalit) will recur every now and then.
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