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.
Speaking at a function organized by Minority Morcha (Krishanaraja assembly constituency) at Kalegowda community hall here recently, he said: "After independence, minorities had pinned hopes on Congress for growth. But that party used minority people as its vote bank and ditched them. Its contribution for the community's education is negligible."
Comments
I think these ladies are either non-muslims and are in veil just for eye swash or these are paid workers who can do anything for money. If they are real muslims, they will never support bjp who is anti muslim and its already mentioned in their agenda that all members should work against muslims/islam. they are targeting muslims from all side and could not understand how these ladies and one Abdul Aziz is supporting this anti muslim party. I kinow that Congress has done nothing to Muslims, but bjp is bigger enemy of muslims than congress. Abdul aziz and these hired ladies might have forgotten that during the victory procession by bjp members they attacked Muslims, their shops, places of worships etc. Are these hired ladies and Abdul Aziz are blind/deaf or have sold themselves to bjp for the sake of some money. Shame on you ladies/Abdul Aziz. Dont act like Munafiqs. BJP is using you for vote bank also and will kick you out once they come to power. May Allah give you hidayat and right way of thinking. Dont ruin your present life and the life after death for money and praise/glory/appreciation.
minorities women uplift bjp after that BJP uplift you parda then you come to know the habit of BJP be aware of BJP and ABDUL AZIZ
congress jindabad, bjp murdabad.
all minorities should support bjp then only bjp can fully uplift india.
yes we know about this, still we support congress till our death.
bjp doing actually good for minorities, but congress always used them for vote bank, that they will never understand.
What bjp showed towards minority is more than enough....now since u hv been a silly post, you don't try to show off
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