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.
According to reports, the Mumbai Police has recommended that the state book Dr Naik under the Unlawful Activities Prevention Act (UAPA) and ban IRF.
Comments
First attempt failed..... Maharashtra govt. Gave clean chit...now BJP center running behind Muslim schools and scholars......khujlee of people flowing in to Islam...no one can stop this if god wills....
FIRST BRING THE MALLYA TO INDIA
THEN FOCUS ON THE ZAKIR NAYAK ISSUE ,, ONCE POLICE GAVE HIM CLEAN CHIT RIGHT AGAIN THEY MAKING SOME DRAMA FOR DR ZAKIR NAYAK...
Haha Try hard RSS terrorists. Hand in Glove with Cow Swamy. Whatever you do, Cowswamy has to pay 500 crore to Dr. Naik.
India belongs to Muslims as much as Hindus. We need our own Main Stream Islamic Channel in India. This is our constitutional right. We Muslims must fight and come out on the street for following channels to be shown in India Makkha Channel, Madina Channel & Peace TV.
We Muslims has to work hard for Da'awa in India. Distribute Islamic CD's on comparative studies to non Muslims so that they can Judge between right and wrong.
We will wait and watch extent of RSS terrorism. Gulf countries should freeze RSS terrorists & Sympathizers accounts. They should put pressure on US govt to declare RSS organization as terrorist organization.
In Sha Allah End of Times Now Channel & Cowswamy. I have serious doubt on Maroof raza (Times Now Consultant) whether he is Muslim.
Mr. nothing but truth, for you he might seem like a Joker, for Allah dr. Zakir naik is his obedient slave, and Allah loves his slaves like anything which is beyond the capacity of human being's imagination. Fear Allah, fear the torment of Allah, if you don't know yet, refer to the holy Quran just once. We pray almighty Allah to protect dr. Zakir naik and in sha Allah you will see. Allah says in the holy Quran \Wakul Ja al haq wa zahkal batil, innal batila kaana zahooka\" The truth has arrived and the falsehood perished, Indeed falsehood is bound to perish."
Now let Mr. Joker Naik present his illogical logic in front of court. He would then understand Court is not a place to bluff as he does so often among innocent half-educated public. The heat is on..
Add new comment