Income Tax Department begins action under Benami Transaction Act

Income Tax department has initiated action under the newly enforced Benami Act. IT Department said, post demonetisation it has issued 87 notices and attached bank deposits worth crores in 42 cases nationwide under Benami Transactions Act. The Act attracts a heavy penalty and rigorous jail term of a maximum 7 years. 

The IT department had carried out public advertisements after demonetisation and warning people against depositing their unaccounted old currency in someone



else's bank account. It said such an act would attract criminal charges under the Benami Property Transactions Act, 1988. The Act is applicable on both movable and immovable property, that has been enforced from November 1, 2016. The I-T department is the nodal department to enforce thesaid Act in the country.

Quoting officials, PTI reports that the taxman has issued numerous summons under the Benami Transactions Act and is in the process of issuing more.