By Accommodation Times Bureau
The Benami Transactions Informants Reward Scheme, 2018 may land up you in jail instead of putting the illegal property holder. On June 1, Ministry of Finance uploaded a release which states that under the Benami reward scheme one can a person can get reward up to Rs. One crore for giving specific information in a prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units.
The ministry said, the identity of the persons giving information will not be disclosed and strict confidentiality shall be maintained. The Benami reward scheme requires information related name & address of the person in whose name the property has been obtained, supporting evidence, assistance to the tax sleuths in the investigation.
If the informant alleged about the benami property or furnish false information he may be jailed up to 5 years and even being liable to pay up to 10 percent fine of the fair market value of benami property, under the Benami Transactions (Prohibition) Amendment Act, 2016.
The Benami property rewards come in 2 phases:
1) 5 percent of the property’s fair market value within 6 months of the final confiscation.
2) A reward of 1 per cent of the benami property’s value with a maximum of Rs 10 lakh within 4 months
With the objective of obtaining people’s participation in the Income Tax Department’s efforts to unearth black money and to reduce tax evasion, a new reward scheme titled “Benami Transactions Informants Reward Scheme, 2018”, has been issued by the Income Tax Department. This reward scheme is aimed at encouraging people to give information about benami transactions and properties as well as income earned on such properties by such hidden investors and beneficial owners.