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.
Mahesh S Patil, the judge of second additional civil court and JMFC, Managluru, ruled that Mr Uchil should be given a compensation of Rs 50,000 along with interest at the rate of 9% per annum from the date of suit till the actual payment towards damages.
Comments
Dear Abdulraheem Uchil,
Hope these messages, will contribute you a major change in your life as a TRUE MUSLIM.
At least now you have to change yourself for sake of your own.
All community people will love you, if you truly learn and change.
Allau is Gafoor Al Raheem. He accepts sincere apologies and Tauba
I really respect for the word what he said is
About the interest being Muslim !!!
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear Mr Rahim,
Congrats on winning the law suit.
In my opinion, you dont have to listen to the negative comments, especially to that of you receive from bearies. It doesn't matter which political party you belong to, as long as you do good service to the society.
They advise you on how to be 'true muslim'. 'True muslim' tag is not 'universal'. Till today nobody can unambiguously/univocally/indisputably define 'true muslim/islam'. We have 100s of parties in Islam. Each party considers themselves as 'true muslims'. This confusion will never ever be cleared until end of this world. Even terrorist claim they are 'true muslims'.
So, please continue your good works sir. By good works I mean moral/ethical and socially beneficial works, which are independent of any religion. Good is good. Bad is bad. No need any religious tags/support for it.
Thanks for valuable suggestions,(positive and negative comments )
What a joke Rahim!!! From which jungle these so called politician are coming from... Redicolous
Only in front of Media he is telling that he is not accepting interest. The real matter is entirely different. If he is a true Muslim he never join facist party like BJP. If he take interest or leave interest what is the difference....??? for him.
Dear Raheem Bhai,
If you are a true muslim then you should not accept even 50,000/ rupees . Because it is not that your hard earned money. Being a true muslim atleast you should donate this money to some charitable organization such as Old home , disabled children center or orphanage , then only you can say you are a true muslim.
Ra(hi)m Uchila, you cannot be a true muslim by not accepting interest, you have to learn and practice Islam to be come Muslim.
example for the man kind, best of rahim uchila \Being a ‘true Muslim’ I cannot accept interest,” he said."
By the way, what was the actual allegation? Can you please publish that defamatory article here ? :p
Rahim uchil shirt color and pose super
Just avoiding interest will not make a person true Muslim. A Muslim has to set example by practicing all teachings of Islam in life, so that even Non-Muslim be attracted.
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