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
You people can check reports, SDPI people involved in many RSS workers' murder. They didnt get proper punishmnet
How BJP became communal..! BJP stands for patriotism. SDPI people working for conversion of people and making issues. That party should be banned fully.
Shame mr. rai. You only making the situation more complicated. By terming 'communal hub', you are injecting fear to common people.
BJP, SDPI both are communal they agreed. Should add more. BD, PFI etc
Dear Mr. Rai, with due respect, you and your party before flagging off the rally must answer the following questions to the general public!
1) you and your party won many times and even ruled undivided DK District but, why have you failed to controll the RSS and its hate campaign aginst a particular community???
2) During the last assemble election you have made public that once you got elected, you will send prabahkar bhat to jail! what action have you taken??
3) your own party worker late mr. Jaleel karopadi murdered by RSS Goons, what action and justice you have done to his father? who openly cried for justice and in anger he critisized you for failing to provide him justice!
4) under your constituency there were many muslim leaders and activists murder happend were were you that time?
5) the national tragedy of Babri masjid was demolished under congress rule and your national leadership maintained the soft hindutva, why have your party failed to protect it ..?
6) your national leadership had once said we will give justice to muslim community, and will rebuild babri masjid, being in a power for more than 10 years why your party couldnt provide the justice to the victims??? 7) your party have appointed the sri krishna commission! what action your party implimented against the hindutva brigade??
8) you and your party claims that, we are the protector of minority community! what protection you and your party provided for indian muslims?? since 70 years they have been looted, burnt alive, raped,tortured, made refugees, made scape-goat as terrors, etc etc ???
during all those time indian muslims dedicated their trust on all the so called secular partys, but all of them ditched to the community and maintained soft hindutva!
The anger, Disappointment, Frustration, and the Thawakkul on allah made to born SDPI on indian soil..!! that is the reality, that nobody cannot deny!!
Your Failure is SDPI's Stength, and SDPI's Success is indian oppressed community's success..!!
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