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
This women has gone crazy.... evey time she opens her mouth she spills hatred and venom.... i laugh and feel pity on those people who elected her on what basis they have elected her i dont know.....can you point out a single area where she has done good thing for the society...... i havent seen she speak about her work about the development....... she is into communal politics only
Get "wedlock with Yeddi", 2nd time ?
Abhi counsi shaadi ?
soon she will be out of BJP....
BJP has no need to join hand with other terror-communal organisations. They are one who spits communal venom all the time
Who joined hands with PDP?? Thuppakki Shobha forgot that..!!
Wonderfull Akkama Akka, what about Baj Ranji? Terrorist RSS? What about your Yeddi Chaddi?
you pull of the gate, one way Trafic? not good nowadays every were two way trafic Akkamma, being sitting MP you have no knowledge because always behind Yeddi. so better hang yourself or get wedlock with yeddi, then only you Improve>
BJP's policy, those who pass deregatory remarks and spread communilism, they will get ministerial berth. During next reshuffle Shobakka will become a Minister of Communalism. Shobakka, don't be too smart, otherwise you will loose your looted Coffee Estate in Madikeri.
what about PDP Shobha kandodi arent they anti-nationals now ?
Yabba Khandody opened the mouth. Created only for desh drohi rss activity and communal clash.
jaa bahen shadi kar le... you will have better life than this...
Madam,
If we agree by your words, then what is your government in center is doing. Ban them. You want to play politics by keeping them active and polarise hindu votes. One think you forgot that people of coastal karnataka are highly educated. Yor can see the latest PUC results. So dont fool. It may backfire on you. Jai Hind
This woman always spits the venom on other community...
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