Ever since the government announced Rs 1-crore reward for anyone giving specific information about benami properties on June 1, the Income Tax (I-T) Department's Benami Prohibition Unit (BPU) has been inundated with calls from people sharing information about assets. However, the tip-offs have been of no use as the IT department has not been able to make any headway due to lack of proper details.
Under the Benami Transactions Informants Reward Scheme 2018, a person can be rewarded up to Rs 1 crore for giving specific details to the Joint/Additional Commissioners of Benami Prohibition Units in Investigation Directorates of Income Tax Department. The government had in 2016 amended the Benami Act to make the law stronger.
A TOI report said a lot of people have given complaints to the BPU in writing as well as orally, but most of them have come up with only general details. Most informants approaching the department with complaints fail to provide proper information, and are more interested in getting award money, the report says.
The government on June 1 said that it is going to reward informers who will share details of such properties and transactions with the Income Tax Department. According to the scheme, if the Benami property is provisionally attached, the informant will be eligible for an interim reward but final reward can only be given when the Benami property is fully confiscated.
The confiscation would be deemed to be final if two years have passed from the date of confiscation and there is no litigation pending. Interim reward will not be more than 1 per cent of the total value of the attached benami asset. The government has set Rs 10 lakh as maximum amount for such rewards. However, the final reward will be up to 5 per cent of the value of such assets, and maximum amount of total reward (interim and final) in respect of a single benami property can be limited to Rs 1 crore only.
Informants can provide details about the Benami transactions and properties as well as proceeds from such properties which are actionable under Benami Transactions (Prohibition) Amendment Act, 2016. Foreigners will also be eligible for such reward. Identity of the persons giving information is not disclosed.