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Up to 7 Years Jail If Unaccounted Money Is Deposited In Other’s AccountMoney

Up to 7 Years Jail If Unaccounted Money Is Deposited In Other’s Account

The tax department has decided to slap charges against depositing unaccounted old currency in someone else’s bank account under the newly enforced Benami Transactions Act against violators that carries a penalty, prosecution and rigorous jail term of a maximum seven years.
Official sources said that the department has detected over Rs 200 crore in undisclosed income after it conducted over 80 surveys and about 30 searches in cases of suspicious usage of the scrapped currency. About Rs 50 crore has also been seized in these operations since November 8, they said, across various states. The sources said the taxman has initiated a country-wide operation to identify suspect bank accounts where huge cash deposits have been made post November 8, when government demonetised the Rs 500 and Rs 1,000 currency notes.
Such instances where the suspicion is found to be true will be prosecuted under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property that has been enforced from November 1 this year. The Act empowers the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has adjusted in their account. “The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar,” a senior official explained.

(Image Credit: Indiatimes)
(With inputs from PTI)

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