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
Nothing to say ! Everything is in the name of Dargha fights route cause is Un-Islamic.
Wrong people of the RIGHT-RELIGION.
Desecrating grave and Ullal Kazi khoora Thangal and SSF electing a rowdy who spending night at bar as Darga president against majority wishes
these two example enough for how low people can go for Darga business
lock down darga to save people from hell fire
really inhuman incident. must be hanged whoever made this crime.
These people trying to take advantage of Minister's patience. May Almighty Allah rest in peace his parents. Aameen
either minister or common people , writings on graves , building permanent structures not allowed in islam, muslims should avoid it... people can not show their anger by destroying such things, or degrading graves... only fools and ignorant muslims only can do such things... those fighting for power, should understand that you are fighting for unlawful money , dargha itself is un islamic thing for muslims... Prophet Muhammed (pbuh) ordered to destroy such dargahs, muslims also follow that way only...
what UT Khader did now, this people fighting for dargah's president ship. and damaging ut khader's parents graves is different issue.
as Monu Borkala said,
the above incident clearly says Dargah business is very profitable and it does not have any islamic background, and i must say that for money this type of people will kill anybody and do above incident further,
inhuman can do this crime. totally i must say its wrong. for all of us parents means its like a god to us, for the memory we build their grave, it feels like they are with us, damaging grave is like playing with emotions.
Whoever did this job is highly condemnable at the same time being a well wisher of U.T.Khader we are expecting our Minister to act fairly in the trouble unfolding in Ullal dargah. He is taking wrong side by siding with SSF people against the wishes of people of Ullal. It was clear by recent election to Dargah Committee majority of 27 out of 49 members elected a president instead of supporting people verdict sending government official of waqf at mid night to lock the Dargah chamber is highly condemnable.
UT Khader's big Fan, this must be a work of SDPI, if dog bark on the street let them bark, we should not think about it.
khader sir we are with you, whatever damage they have done to you the same in other way they will go through it.
Dont worry khader bhai, not a big deal to build a newer one. let this dogs go to the hell.
sad news, whatever the issue is touching someone's grave is totally wrong. i can proudly shout \humanity lost\"."
the above incident clearly says Dargah business is very profitable and it does not have any islamic background
catch those mad dogs and grave them in road.
UT khader's father was a great man he sacrificed so much to the society. this is clearly a horrible violence.
this is totally wrong, the politician or common man. should not touch the grave of the parents, some mad dogs did this
Devotees? These are humans with the worst order. And they want to take iver management of a dargah... obviously for corrupt purpose. #Shame
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