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
ANDHA KANOON
We are GHULAM to westerners, We ban consumption of BEEF in India, but, we want to EXPORT millions of tons of BEEF for foreigners. We ban consumption of BEEF in India because consumption of Muslims, But, we want to give special license to serve BEEF to foreigners.
Congress fought against the westerner's Ghulamgiri, Now, BJP want to become GHULAMS again.
The holy god cow sleep and wander in Road side and Bhaktas and rich people stay in highfi AC Room . What a utter stupidity.
BEEF BAN ONLY BECAUSE MUSLIMS CONSUME IT MORE.. NOT COZ OF ITS THEIR GOW MAAATA......
FOREIGNERS CAN KILL GOW MAATA.......
WHAAT WHAAAT A MAAATA IT IS......... OMG
hindu brothers realise the bjp politics.... they just want to be in big chairs .. no sentiments on hindu gods or goddesses......
can foreigners eat their mother. (cow)
my dear vhp partiots, you see cow god will be eating by foreigners,
you wake up otherwise all cows will be finished from india
Couple of questions coming in mind....
1. Who is going to slaughter cow?
2. What you will do with not sold out cow meat?
In future foreigners can eat God mother in Hariyana....oh what is this double standard....God mother must be angry now....BJP is responsible for it...next election I doubt they get any seat.....God mother's curse will prevail...on Modi sarkar...
Wha wha wta a drama by bjp ap bik baaarrr modiji ki cow biryani..
were is now bd & &vhp rss this is we call intolerence how they give the special licince to cook a holly cow biryani ......
one who india not allowed to eat cow and killed fr that reason
One who coming from out of the country they wil eat//
Kaate g tho khayega na............License ke saath marega kya........apne maa ko
This is the beginning of admitting their fault.
Beef lovers, just join the foreigners as their guest Or their host.
Beef consumption will now increase than before.
They are afraid of foreign income.
BJP did stupidity, mess and cleaning it themselves.
It means their love towards their Go Matha is just a politics, in front of money, no value for the mother.
Hum kare tho balathkaar....Aur aap kare tho chamathkaar
this is incredible law from bjp,,hahahahahahaha
Hindutuva members please recognize your leaders choice. They are already fooling YOU people to attack the innocent and they themselves involve in selling your MAA COW ...
Its Politics to FOOL people who attack innocents without VERIFYing the authenticity of any isssues.. Please WAKE UP. Dont become fools again & again.
BJP's Beef Bhagya... Biryani is yummy :p
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