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
He earned lot of money through spreading false news. After getting lot of money. now he decided to start his own to suck BJP.
I think the center has given him the cooked story to prepare himself before the Bhopal fake encounter case to bohw bohw on the news-hour....thats y he resigns it seems....now he knows the real fact of the feku......Allah will give him Hidaya...
Who ever speaks for Mr .Modi will get XYZ Security. Soon Anupum Kher will also get same facility.Ordinary People work hard and pay TAX. But our Modi Govt uses for all these useless people's Security.
India is Growing India is Shining.
LET HIM GO... WHO WANTS TO KNOW THE REASON... I DON'T.... AND PLZ TAKE AWAY HIS GOVT SECURITY... DONT WASTE OUR TAX MONEY ON SUCH PEOPLE ..............
Finally coward has resigned. Great news for our country's peace and prosperity.
Surely his bad time is nearing, AWASANA KALADALLY VIPAREETA BUDDI
He will start reading news in Khaki chaddi now
Definitely some thing worst expected from this fellow. Might be joined with some anti nation communal group. Other than that nothing nation will expect.
God save our media and the nation.
Jai Hind
Wasting Tax payers money on useless reporter's security.
He will start new channel. RSS now
He will start Patanjali Times with Baba Ramdev.
He is going to make a new news channel with Modi ....Fakes Now.....
Or next Modis spokesperson.....sure....
May be he read the QURAN and understood the REALITY on how EVILs in this world trap people by spilling out venom & by twisting the real FACT.
Arnab goswami where are. You? Nation is worried
When are you coming back
Arnab please come back soon... People are asking \itna sannata kyu hai bhai!!!\". I have not been able to focus at work, getting irritated quickly, not able to eat my dinner, getting sleepless nights.., please come back and tell the nation that you are not dumping all of us!!!
Your viewer from New York!"
MOHAN BHAGAT IS WAITING WITH HIS ARMS OPEN.
Thank god... Finally an end to noise pollution, after Diwali.
Peaceful new year ahead
thank God. Now Indian Journalism is saved from disaster . Work of journalist is to preach truth not to bark and fire in air
The viewers will miss his famous style of questioning the guest panelists: THE NATION WANTS TO KNOW!!!!!!!!
We miss your News hour . Waiting to see you launch a global channel.
He will start a new channel: Name will be TIMES BOW WOW
Crazy man!
Modi would take him in his cabinet.....cant say....\Birds of feather flock together\""
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