New Benami Law And Income Tax Act, 1961
- Blog|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 3 May, 2021
Latest from Taxmann
- If any person is found to be the owner of any money, bullion, jewellery or other valuable article and same is not recorded in any books of account of the person and the source of acquisition is not satisfactorily explained, the money and value of bullion, jewellery or another valuable article shall be taxed as his income for such financial year at a flat rate of 78% without allowing any deduction or threshold exemption. This will be the case if the amount of such income is voluntarily disclosed by the person in his ITR and 78% tax is paid on or before 31st March of the relevant financial year.
- If such income is not voluntarily disclosed and/or tax thereon not paid as aforesaid, the same shall additionally attract a penalty of 10% if detection is otherwise than during search by IT Department. If detection is during the search, the penalty will be 30% or 60% depending on whether the person co-operates with IT Department or not.
- Owner here means the real owner and obviously cannot mean the benamidar.
- If the Income-tax Department finds the ostensible on record owner is only a benamidar and the real owner is someone else, then the above provisions can’t be applied to tax the money, bullion, etc., in the hands of the ostensible owner. Instead, the matter would be proceeded for under the Benami Act and the amount would be confiscated and the benamidar and the real owner would both be prosecuted under the Benami Act.
- It may be noted that benamidar can’t preclude enquiry into the benami aspect by voluntarily declaring the amount in his ITR.
- Thus, in all income-tax matters, while dealing with any unexplained money, bullion, jewellery or another valuable article, the Assessing Officer will also examine the Benami angle.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
