I-T Dept warns violators will go through maximum 7-year jail for suspect cash deposits:

INDORE, India - Nov. 22, 2016 - PRLog -- The Income tax department has decided to slap charges under the newly enforced Benami Transactions (Prohibition) Amendment Act, 2016, warning people against depositing their unaccounted old currency in someone else's bank account. As per the Act, violators have to undergo a penalty, prosecution and rigorous jail term of maximum 7 years.

In a related development, people familiar with the matter said that the I-T department has detected over Rs. 200 crore in unrevealed income after it conducted over 80 surveys and 30 searches in cases of suspicious usage of the scrapped currency. Across different states, about Rs 50 crores has been seized since November 8, they said.

The sources stated, the taxman has begun a country-wide operation to spot suspect bank accounts where massive cash deposits have been made after the government demonetized Rs. 500 and Rs. 1000 notes.

The central board of direct taxes has asked the Income Tax department to closely monitor all such transactions where people are using bank accounts of other persons for converting their black money to white by using the demonetized currency notes of Rs 500 and Rs 1000. Already some cases have been reported in this connection and the I-T department is now set to issue notices under the Benami Act, the people said.

The official said that the Benami act provides that the benamidar, the beneficial owner and any other person who helps or induces the Benami transactions, will be punishable with rigorous imprisonment for a period ranging from 1 to 7 years. The benami amount in the bank account deposited post-demonetization will be confiscated and the accused will also be liable to pay fine which extends upto 25% of the fair market value of the benami property, the official said.

The Income Tax department has stepped up its action to check black money dealings, money laundering and tax evasion in the wake of the demonetization and has issued hundreds of notices of enquiry to charitable and religious trusts to show their cash balances in their accounts and to those who have deposited huge cash in their bank accounts.

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