Keep Away From Benami Transactions, Warns Income Tax Department

Keep Away From Benami Transactions, Warns Income Tax Department

The taxman is the nodal department to enforce the Benami Act in the country

New Delhi: The Income Tax Department on Wednesday warned people to “keep away” from benami transactions, cautioning that violations under the newly enacted law invites criminal prosecution and rigorous imprisonment up to seven years. The department put out its alert in a public advertisement published in leading national dailies.

Titled “Keep Away from Benami Transactions”, it described black money as a “crime against humanity” and urged “conscientious citizens to help the government in eradicating it”.

“Benamidar (in whose name benami proper is standing), beneficiary (who actually paid consideration) and persons who abet and induce benami transactions are prosecutable and may face rigorous imprisonment up to 7 years besides being liable to pay fine up to 25 per cent of fair market value of benami property,” the I-T advertisement said.

The tax department attached benami assets worth Rs. 1,833 crore across the country, issued 517 notices and made 541 attachments, from November 1, 2016 to October 2017.

The department started initiating action under the new Benami Transactions (Prohibition) Amendment Act, 2016 from November 1, 2016.

The advertisement added that “persons who furnish false information to authorities under Prohibition of Benami Property Transactions Act, 2016, are prosecutable and may be imprisoned up to 5 years besides being liable to pay fine up to 10 per cent of fair market value of benami property”.

It added that benami property “may be attached and confiscated by the government” and that this action will be in in addition to prosecution under the Income Tax Act of 1961 for tax evasion charges.

The Income Tax Department is the nodal department to enforce the Benami Act in the country.


Corruption in education: Teachers education council asks staff to declare income and assets

National Council for Teacher Education

To curb corruption and bring in greater transparency, the National Council for Teacher Education (NCTE) has asked all its employees to furnish details of their income and assets including property that will be put up on its website.

According to sources, the council has over a period of time received a number of complaints regarding corruption and the move is aimed at checking that.

“All the employees have been asked to provide details of their incomes, vehicles, property and its present market price. Data for three years has been sought from them so that it can be compared with the previous years,” said a senior NCTE official.

The council is responsible for providing recognition to B.Ed colleges and teacher training institutes. There are 11474 such institutes in the country. In the past, NCTE has been accused to processing applications for recognition out of turn. At the same time, a number of inspecting teams had members of questionable credibility and in some cases affiliation was granted even to non-existent colleges.

Once the data of assets is complete it will be put on the NCTE’s website and the figures provided by the employees will also be monitored and compared to their income levels, sources further said.

“Generally too they are supposed to furnish such data but many people don’t do it despite reminders. But this time we have decided to put it on the website so that it is in public view,” added the official.

In case there are cases that look suspicious they will be put on a watch list and will be monitored closely. Employees at all levels including deputy secretary, under secretary, section officers among others have been asked to provide information.

The issue of corruption in NCTE has been raised in the Parliament too, in the past. In 2015, the then HRD minister Smriti Irani had informed the Lok Sabha that after reconstitution of the NCTE in May 2013, a vigilance wing was established in NCTE headed by Chief Vigilance Officer to look after the vigilance cases against the officers/officials of NCTE and in its Regional Offices.

“The Vigilance branch takes necessary measures in the cases of irregularities that come to their notice. In order to ensure transparency in the functioning of the NCTE, several steps have been initiated such as the online submission of applications for grant of recognition, on-line payment of fees and processing of applications in chronological order, etc”.




Minor becomes a tax payer if her income arises from her skills



My son (15) is a singer and performs at live shows where he gets paid. I want to know how his earnings will be taxed.

—Mohit Bhatnagar

As per section 64(1A) of the Income-tax Act, 1961, clubbing provisions (i.e., income of the minor is clubbed with the income of the parent) would be applicable if the minor (i.e., below the age of 18 years) earns an income.

But these clubbing provisions are not applicable if the income arises or accrues to the minor child on account of activity involving application of his skill.

Since your son earns income by performing at live shows, the income earned shall be taxable in his hands. He will be taxed as a separate taxpayer. The amount received by him for his performances would generally be taxable as income from business or profession. Depending on the income, the applicability of maintaining books of account, tax audits and service tax need to be examined separately.

If I resign from a company after total service of 6 years, kindly confirm if there would be any tax deducted at source (TDS) on withdrawal of my Provident Fund (PF)?

—Nikhil Sharma

The PF withdrawal triggers a tax liability if the same is withdrawn without rendering continuous services with the employer for a period of 5 years or more. But if the accumulated PF balance maintained with the old employer is transferred to the PF account of the current employer, then the period of previous employment is also included as part of continuous service.

As you have already completed more than 5 years of service with your employer, there will not be any tax implications on receipt of the accumulated PF amount in the year of receipt of the amount. Accordingly, there will be no TDS at the time of payment. But you will have to report the PF withdrawal amount in the personal income tax return (ITR) form, to comply with the reporting requirements. The PF withdrawal will be as per the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, which requires you to have a non-employment period of 2 months after leaving your job.

I married in 2016. My wife and I received gifts in the form of cash from relatives and friends, which totalled aroundRs.45,000. Do we have pay tax on it?

—Yash Mehta

Under section 56 of the Act, any sum of money, the aggregate value of which exceeds Rs.50,000 received by an individual during the financial year (FY) without or for inadequate consideration, is taxed under ‘income from other sources’ in the hands of the recipient. But any amount received from specified relatives, or that received on the occasion of marriage, is not taxable in the hands of the recipient.

As the aggregate value of cash received by both of you during

FY17 is on occasion of your marriage, there will not be any tax implication.


Rs. 1.23 Lakh Crore Of Income Tax Refund Pending: Government

Rs 1.23 Lakh Crore Of Income Tax Refund Pending: Government
New Delhi: Refund claims worth Rs. 1.23 lakh crore are pending with the Income Tax Department as on March 31, the government on Friday said.

“As on March 31, 2016, refund claims of above Rs. 10 lakh are pending only in 57,783 cases for various assessment years, involving a total amount of Rs. 1,23,335 crore,” Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

Out of this, he said refunds of Rs. 97,825 crore are pending due to proceedings for scrutiny assessment. Some claims of refunds of large amounts are pending with the department for various statutory and administrative reasons, he said.


With a view to providing relief to small taxpayers, the Central Board of Direct Taxes has authorised the Centralised Processing Center (CPC), Bengaluru, and the assessing officers to issue refunds up to Rs. 5,000 and refunds in cases where outstanding arrear is up to Rs.5,000 expeditiously without any adjustment of outstanding demands, he said.

“During the current year, till August 1, refunds of up to Rs. 5,000 have already been issued in 11,91,598 cases involving a total amount of Rs. 244 crore,” he said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)