Government announces maximum award of Rs 1 crore for disclosing Benami transactions

The government introduced a new reward scheme on Friday for awarding and encouraging people to give information about benami transactions and properties.

Under the scheme, a person can get a maximum of Rs 1 crore for providing information on benami (proxy) transactions and properties.

The new initiative known as "Benami Transactions Informants Reward Scheme" will help the Income Tax Department to unearth black money and to reduce tax evasion.

The ministry also clarified that strict confidentiality will be maintained under the scheme and the identity of the person giving the information will not be disclosed. 

The rewards will also be given to foreigners for disclosing such transactions and properties.

The Ministry also said that black money was invested in properties in the names of others, even though benefits were enjoyed by the investor concealing his beneficial ownership in his tax returns.

The Finance Ministry said, "Under Benami Transactions Informants Reward Scheme, 2018 a person can get reward upto Rs 1 crore for giving specific information in prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units in Investigation Directorates of Income Tax Department".

Under revised Income Tax Informants Reward Scheme, a person can get reward up to Rs 50lakh for giving info in prescribed manner to designated officers of Investigation Directorates in IT Dept about substantial evasion of tax on income or assets in India actionable under IT Act '61 ANI reported.