KFDC chief bats for ban on fish export from Karnataka to check rising prices

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.

New Delhi, Feb 28: They could hear shots being fired, sense smell of property and vehicles being burnt and feel the stones being pelted. Despite the mayhem that unfolded just a few steps away from their doorsteps, many Muslim households did not feel unsafe due to their Hindu neighbours during the violence in Delhi earlier this week.

Tarannum, a resident of Chand Bagh, said she cannot thank her neighbour Nem Singh enough for saving 15 members of her family that fateful night of February 25. Singh, an auto-rickshaw driver, lives right across her house.

"I could hear the thumping on the door. Our neighbour came to rescue us and assured us that no harm would come to our family, " said Tarannum who lives in lane number 7.

"We thought khayamat has come. Our kids too got scared. Those indulging in rioting are just terrorists. Hindu brothers gave us shelter and saved us. How should I say that they are Hindus or Muslims? When we were under attack, these Hindu brothers provided us safety. We should not fight, " said Tarannum while recounting the horror.

She said a mob has no face, no religion. "I want to tell everyone mob has no name, no religion. Kaun sa pathar kisne mara kisko laga pata hai kya? Pathar ne mazhab dekha kya? (Which stone was thrown by whom, who was hit, does anyone know. Stone does not have a religion," she said.

Singh said he could not bear the wailings of his neighbour's kids.

"Dar to tha par apni gali mein kisi ko pareshan nahi hone dena tha. (I too was afraid but I could not have let them hurt my neighbours)," said Singh when asked if he could have also been attacked for giving shelter to Tarannum family.

"I told them that the rioters will have to go through us first. We all were equally scared," recalled Singh.

Jameel, another local resident, said that his Hindu neighbours were even ready to sacrifice their lives to save him from the ruthless terrorists hired by pro-CAA politicians to unleash violence against Muslims.