Rs1 cr reward for benami deal tip-off

The Finance Ministry has come out with a scheme to reward the informants of benami transactions. A person giving specific information, in a prescribed manner, about a benami property will get up to Rs 1 crore while the same for undisclosed black money stashed abroad could fetch up to Rs 5 crore. The ministry has also amended the existing income tax informant reward scheme of 2007.

The Central Board of Direct Taxes (CBDT), the apex body for direct taxes, announced on Friday Benami Transactions Informants Reward Scheme, 2018, under which any person, including a foreigner, can inform joint or additional commissioners about benami transactions and properties which can be tried under the Benami Transactions (Prohibition) Amendment Act, 2016.

The scheme is aimed at encouraging people to come forward with information about benami transactions and properties as well as income earned on such properties by hidden investors and beneficial owners, a CBDT statement said.

"Under the Scheme, a person can get reward up to Rs one crore for giving specific information in prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units (BPUs) in Investigation Directorates of Income Tax Department about Benami transactions and properties as well as proceeds from such properties which are actionable under Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act, 2016," it said.

The government also amended the Income Tax Informants Reward Scheme under which information about a suspected transaction can earn one up to Rs 5 crore.

The government has set up 24 dedicated Benami Prohibition Units (BPUs) across India. These units are supervised by principal directors of investigation of the Income Tax Department.

The tax department also assured full confidentiality of the informer of all the reward schemes saying the identity of the persons giving information will not be disclosed.

Information shared with I-T authorities about any undisclosed black money held overseas under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, can fetch an informer up to Rs 5 crore.