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
After all these sufferings,it pains a section of us,common peole still support demonetisation !
What was supposed to be a surgical strike against tax cheats and counterfeit currency became an attack on a large informal economy that ran almost entirely on cash. The hardships caused by a shortage of new legal tender, and the rush to deposit old 500 and 1,000 rupee ($15.40) notes in bank accounts before the Dec. 31 deadline, took a heavy toll. More than 100 people died in bank and ATM queues, although it's impossible to confirm if the deaths from heart failure or exhaustion were directly a result of demonetization.
I Will donate one rope to hang him.
@Truth Teller - I share your views 100%
Honestly, i am not sure what is there to like about Congress! Besides all the scams running to several thousand crores and losing face in the international scene (thanks to Kalmadi) they have played religion & caste politics for decades for vote bank ruining the country. For the first time after independence perhaps there is some move towards honesty, improving infrastructure, education and cleanliness. Why some continue to hate Modi is just beyond me if you truly love this country. Rahul is bad news for India unless they find someone else who can be like Modi - hardworking & with a vision to change.
Honesty is incompatible with the amassing of a large fortune - Mahatma Gandhi
Modiji is the true and honest man after Gandhi
Demonetization in India was a war against dishonesty and it is a movement against corruption.This exercise has brought an awareness to the people not to make wealth dishonestly.Majority of the people wanted honest system in India and supported the Government's initiative on demonetization.
I am a hardworking sincere person. I earn for a living and to support my family, because of demonetization me and my family suffered without any cause. This man freezes our transactions to a minimum of 2000 and what not. Who was he to do it, By law it is not permissible unless a person is held guilty by law agencies.
Because of one man 100 innocent died standing in queue. How come once company made 160000 times profit during demonetization, Where is the black money, what happened to panama papers. These statistics have to shown after demonetization. Even now they are misleading crores of people with data not important to Aam Admi.
Dinesh Gundu will soon be under police custody
Nobel prize winner praised Modi for demonetisation and digital India and later he confessed he told wrong after knowing that Modi banned old 100&500 notes and implemented 2000 rupees notes..
I can say Modi is the best intelligent person in the world. And he should get business man of the year award.
Because,
1. Modi made huge benefit to Paytm (paytm ceo didnt do this much profit for his company)
2. Modi made profit to the private agency which made/maintaning aadhar things.
3. Modi made profit to Jio
4. Modi made profit to big companies by implementing demonetisation and GST (same time it affected badly on small scale retailer shop)
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