New Benami Transactions Informants Reward Scheme, 2018: Income tax department to reward up to Rs. 1 crore for informing benami properties

The Income Tax Department of India has announced New Benami Transactions Informants Reward Scheme, 2018. The objective of the scheme identify benami properties across the country and the IT department will reward the person who give information on the benami property with up to 1 crore rupees.

New Benami Transactions Informants Reward Scheme, 2018: Provide information on the benami property and get up to Rs. 1 crores.

The government has identified that the black money is used in buying benami properties (properties by the names of the relatives or friends). Such benami property is used to generate income and more over income tax is not paid on the income by the benami property owner. The IT department has decided to take help of people of India to identify such benami properties and their owners. The IT department will then take an action on the benami property and their owners and if the information given by the informant is found valid then the informant will be rewarded with up to 1 crore rupees. The act was first introduced in 2016 called as Benami Property Transactions Act, 1988, by Benami Transactions (Prohibition) Amendment Act, 2016. The informant name and details are kept secret. Foreigners too can provide details of the India`s benami properties as well

New Benami Transactions Informants Reward Scheme, 2018: Procedure to provide information on the benami properties

STEP 1: Go to the nearest Joint Commissioner of Income TaxiAdditional Commissioner of Income Tax (Benami Prohibition) office. CLICK HERE to find the list of JCIT/Addl. CIT (BP)

STEP 2: You will be given form and you need to provide specific details on the benami properties and their owners

STEP 3: Sign the form and submit it in the same Joint Commissioner of Income TaxiAdditional Commissioner of Income Tax (Benami Prohibition) office

STEP 4: You will be given ‘Informant Code’ to keep your name and details secret

Foreigners too can inform about the benami properties of Indians abroad. They can contact the Member (Investigation), CBDT, North Block, New Delhi-110001 either in person or by post or by a communication at email id member.inv@incometax.gov.in with a copy to citinv-cbd@nic.in for further action. They can also take assistance of Income Tux Overseas Units (ITOU).

When reward is granted, amount and stage?

Interim reward: 1% of the fair market value of the benami properties informed. This amount is given with in 4 month of informing benami property
Final reward: Upto 5% of the market value of the benami property. This amount is given within 6 months of confiscation of the benami property
Maximum reward amount is Rs. 1 crore
The reward will be given in rupees or dollars via all the money transfer mode except for cash

Who can be benami property informer: