Skip to main content

Registered properties worth over Rs 30 lakh on scanner as CBDT turns up heat on black money

Registered properties worth over Rs 30 lakh on scanner as CBDT turns up heat on black money
The I-T department will comb through the tax history of all people who have registered property valued above Rs 30 lakh to check if any tax evaders own such properties by proxy, CBDT chairman Sushil Chandra said.
The government’s continuing crackdown on black money will now see tax officials sift through details of property ownership to ascertain cases of tax evasion and benami transactions.According to Central Board of Direct Taxes (CBDT) chairman Sushil Chandra, the Income Tax department will comb through the tax history of all people who have registered property valued above Rs 30 lakh to check if any tax evaders own such properties by proxy.
Mismatches between asset ownership and reported income enable the department to identify cases of tax evasion. In benami ownership, the beneficial owner of the asset will be different from its legal owner.The exercise follows the enactment of the Benami Transactions (Prohibition) Act on November 1 last year. Since then, tax department has attached 621 properties, including some bank accounts, and the total amount involved in these cases is about Rs1,800 crore, the CBDT chairman said.
The tax department is also investigating the shell companies that were recently struck off the registry and their directors as part of the drive against black money generation, the official said.We will destroy all instruments that are used to launder unaccounted wealth. This also includes shell companies,” Chandra told reporters after inaugurating the Income Tax department pavilion at the India International Trade Fair (IITF) which began at New Delhi’s Pragati Maidan on Tuesday.
Chandra said the tax authority has already done a lot of work on tracking down benami assets.Increased surveillance by the government and a crackdown on black money has led to a three-fold increase in PAN (permanent account number) registrations, an 18 per cent rise in income tax returns as well as a significant increase in the number of properties seized by the tax department this year.

The Business Standard, New Delhi, 15th November 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

New money laundering norms stump jewellery sector

New money laundering norms stump jewellery sector Dealers with turnover of Rs 2 crore and above covered; industry says threshold too low The central government has notified the money laundering rules for the gems and jewellery sector with immediate effect. Now, any entity deals in precious metals, precious stones, or other high-value goods and has a turnover of Rs 2 crore or more in a financial year will be covered under the Prevention of Money Laundering Act, 2002 (PMLA, 2002). The limit of Rs 2 crore would be calculated on the basis of the previous year’s turnover, said the notification. The directorate general of goods and service tax intelligence has been appointed under the Act. Sources said the government’s move to apply the PMLA to the jewellery sector was a fallout of income-tax raids on jewellers soon after demonetisation last November, when it was found that they sold gold and jewellery at a huge premium and accepted old currency notes as payment. The notification, issued on Augus…

Confusion over branded food GST

Confusion over branded food GST The GST Council's statement over the weekend on applying tax on branded food items has left most of the trade confused.

Even though the Council has not changed the rates on food -0 per cent on unbranded stuff and 5 per cent on brands -many small traders who didn't levy GST earlier said they could come under the 5 per cent slab after the clarification.

While they predicted some increase in consumer prices, large players said they can absorb GST in many ways and keep prices steady.

"Trade is confused and hence on behalf of our chamber, we have asked our members to go ahead and charge 5 per cent GST," said Sushil Sureka, general secretary of the Ahilya Chamber of Commerce and Industry in Indore.

The statement clarifying the application of GST came after some businesses were found deregistering their brands and selling under corporate brand name without paying tax, after the Council exempted unbranded food from the new all-encompassing indirec…