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.
The firm had said his life would change if he made “architectural corrections” to his house by spending lakhs of rupees.
Comments
number 1 fraud cheating waste of money stop beliveing
Television channels shuld be dragged to court by relaying such gimmicks programmes
This era is specialized for fake Swamis, Gurus, Babas, fortune tellers, Vastu specialists and so on.
We have seen thousands of structures constructed before without any Vastu still they stand intact for hundreds of years. In TV chennels they broadcast vastu and fortunes at the expenses of viewers. Chandra Shekar guru a fraudester fooling the public, consultation fee is only 500/- then he charges exorbitantly to his shishyas are trapped in Vastu. This is nothing but a cheating and Section 420 and other CPC to be leveled on this fake guru.
I am surprised why State Government is dilly dallying to bring the legislation on superstition and give permanent full stop for these Gurus, Swamis, and Babes.
Unfortunately, even in this advanced scientific era, people get betrayed.
How can be luck is related to stars and date of birth. No common science will accept where as this so called Guru claims his vastu is scientific.
Why other educated people are not raising their concern on unethical practices by such self proclaimed guru/priests/Swamees.
Secondly there are many TV channels are telecasting the program with live interviews.
He is using Suvarna News. there are horoscope readers in Asia Net Malayalam channel .
This man asks the customer - what is your date of birth. Then he gives so called VASTU consultancy, and asks them to change the direction of door, etc.
Thanks to God Islam outright condemns fortune telling and horoscope reading.
Horoscopes are preventing many a times potential couples from marrying telling them their marriage life will not be successful as their birth date and stars are not matching.
make ur mind and heart clear ... everything wil be fine ... they are all fraud and money maker ,.
they fooled many people first they will tell sarala vastu its free service and after getting the appointment they will call us and ask us to deposit 10000. after reaching to your place all their expenses have to be paid by the customer. totally proud telecasting Zee Kannada Channel should be banned,
No. 1 fraud
Number one fraud.
First we have to ban the channels in which this was shown, channels only want trp, after that people lose their money on putting on them,
everyday new new swamijis are taking birth and making fools out of people, their targets are only poor people and greedy ones.
from the first day i was telling with my mom about him, this will be a big fraud, and the truth s here.
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