Benami Transactions Informants Reward Scheme, 2018: CBDT

Benami Transactions Informants Reward Scheme, 2018: CBDT

To,

All Principal Chief Commissioners of Income Tax (CCA)

All Directors General of Income Tax (Investigation)

Sir/Madam,

Sub: Benami Transactions Informants Reward Scheme. 2018

The Board has introduced the reward scheme for informants giving information of Benami property actionable under Prohibition of Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act, 2016, which is elaborated as under.

1. Introduction:

(a) The Benami Transactions Informants Reward Scheme, 2018 (hereinafter referred to as “the Scheme” for brevity) is hereby introduced for regulating grant and payment of reward to a person who is an informant under this Scheme. A person can get reward up to Rs. One crore for giving specific information about Benami property. The identity of the informant shall be kept confidential.

(b) As per the Prohibition of Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act, 2016 (hereinafter referred to as “the Act” for brevity), any property acquired by a person in the name of a benamidar (other than his close family members or in a fiduciary capacity), is liable to be attached and subsequently confiscated and all persons involved in such Benami transactions are liable to be prosecuted which carries rigorous imprisonment for a term up to seven years. Amended provisions of the Act have come into force with effect from 1st November 2016. Details of the scheme are given below.

2. Short title, commencement, and scope of the scheme:

The scheme shall be called “Benami Transactions Informants Reward Scheme, 2018” (the scheme) and shall come into effect from the date of issue. The scheme shall regulate the grant and payment of rewards to informants for giving specific information about Benami property.

3. ‘Informant’ for the purposes of this scheme:

For the purpose of this scheme ‘Informant’ means a person, which will include an individual or a group of individuals, who has-

(i) at a time, given specific information about one or more movable or immovable Benami property(ies) of which the fair market value, as defined in the Act, of movable property, and circle rate, as defined in this Scheme, of immovable property is more than Rs. One crore in a single Annexure – A form;

(ii) furnished in the prescribed form in Annexure – A to the scheme; and

(iii)received ‘Informant Code’ from the authority prescribed in the scheme

Explanation: A person shall not be entitled to any reward under the scheme if he is not an informant under the scheme, even if such person has furnished specific information of Benami property in any other manner, e.g., through a letter, e-mail, CD, Whats App, SMS, phone, posting in social networking site or publishing letter in a newspaper or any other media. “

Related Topic:
The Prohibition of Benami Transactions Act, 1988

4. Secrecy of identity of informant & information:

Identity of the informant, the information was given by him (including all related documents/annexure), or the reward paid to him shall not be disclosed to any person/authority except when expressly required under any law for the time being in force or by order of any court of law. The documents/annexure relating to identity and information shall remain confidential and be dealt with accordingly.

5. ‘Specific information’ under the scheme:

The information given by the informant can be treated as specific information under the scheme only if it includes:

(i) verifiable particulars of the Benami property;

(ii) name and address of the person in whose name the property has been acquired (benamidar); and

(iii) credible basis including supporting evidence for the information that the property was actually Benami property.

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